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had the following stockholders' equity accounts as of January 01, 2013:
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Thomas Inc. had the following stockholders' equity accounts as of January 01, 2013:
Preferred stock - $90 par value, nonvoting and nonparticipatin;
9% cumulative dividend $2,700,000
Common stock - $25 par value $5,600,000
Retained eanings $14,000,000
Kuried Co. acquired all of the voting common stock of Thomas on January 01, 2013, for $20656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years.
During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends.
Kuried used the equity method to account for this investment.
Prepare all consolidation entries for 2013.
This includes a controlling part along with a non-controlling party.
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