Question :
The December 31, 2012 condensed balance sheets of Pym Corp. and its 90 percent-owned subsidiary, Sy Corp., are presented in the worksheet. Additional information as given:
Pym's investment in Sy was purchased for $1,170,000 cash on January 1, 2012 and is accounted for by the equity technique.
At January 1, 2012, Sy's retained earnings amounted to $600,000, and its common stock amounted to $200,000.
Sy declared a $1,000 cash dividend in December 2012, payable in January 2006.
As of December 31, 2012, Pym had not recorded any portion of Sy's 2012 net income or dividend declaration.
Sy borrowed $100,000 from Pym on June 30, 2012, with the note maturing on June 30, 2013, at 10 percent interest. Correct accruals have been recorded by both companies.
Through 2012, Pym sold merchandise to Sy at an aggregate invoice price of $300,000, which added a profit of $60,000. At December 31, 2012, Sy had not paid Pym for $90,000 of these purchases, and 5% of the net merchandise purchased from Pym still remained in Sy's inventory.
Pym's excess cost over book value of Pym's investment in Sy has properly been identified as goodwill. The year 2012 resulted in an impairment of the value of the goodwill equal to 10 percent of its allocated cost at the date of acquisition.
Required:
1. To the worksheet for Pym Corp. and its subsidiary, Sy Corp., at December 31, 2012, using a spreadsheet software, e.g., Excel. A formal consolidated balance sheet and journal entries are not needed. Ignore income tax considerations.