On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows:
|
|
Price Company
|
|
Consolidated
|
Cash |
|
$22,540 |
|
$35,317 |
Accounts receivable |
|
38,040 |
|
62,400 |
Inventory |
|
133,050 |
|
162,587 |
Investment in Shipley Company |
|
224,370 |
|
—0— |
Plant and equipment (net) |
|
195,000 |
|
357,060 |
Land |
|
110,690 |
|
222,203 |
Total |
|
$723,690 |
|
$839,567 |
|
|
|
|
|
Accounts payable |
|
$38,960 |
|
$112,100 |
Note payable |
|
99,300 |
|
99,300 |
Noncontrolling interest in Shipley Company |
|
—0— |
|
42,737 |
Common stock |
|
279,500 |
|
279,500 |
Other contributed capital |
|
150,100 |
|
150,100 |
Retained earnings |
|
155,830 |
|
155,830 |
Total |
|
$723,690 |
|
$839,567 |
On the date of acquisition, the stockholders’ equity section of Shipley Company’s balance sheet was as follows:
Common stock |
|
$83,180 |
Other contributed capital |
|
85,660 |
Retained earnings |
|
53,220 |
Total |
|
$222,060 |
|
|
|
|