Pal Corporation Paid $5,000 for a 60% Interest in Sonny

question 24

Essay

Pal Corporation paid $5,000 for a 60% interest in Sonny Inc.on January 1,2014 when Sonny's stockholders' equity consisted of $5,000 Capital Stock and $2,500 Retained Earnings.The fair value and book value of Sonny's assets and liabilities were equal on this date.Two years later,on December 31,2015,the balance sheets of Pal and Sonny are summarized as follows:
Required:
Complete the consolidated balance sheet working papers for Pal Corporation and Subsidiary at December 31,2015.

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Definitions:

Perfect Order

An order that meets all predefined criteria of the customer without any errors through the entire supply chain.

Common Goals

Shared objectives or aims that individuals or groups intend to achieve together, fostering unity and teamwork.

Choreograph

The art or practice of designing sequences of movements of physical bodies, especially in dance or physical performance.

Team Members' Activities

The specific tasks and responsibilities assigned to members within a team to achieve collective objectives.