Required:a. Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet Immediately following the issuaradditional shares to Penny.b. Prepare a consolidated balance sheet worksheet Immediately following the issuance of additional shares to Penny.Complete this question by entering your answers in the tabs below.Required A Required BPrepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following theissuance of additional shares to Penny.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.CreditNoAAnswer is not complete.Event1Common stockRetained earningsAdditional paid-in capitalAccountsInvestment in Saul CorporationNCI in NA of Saul CorporationDebit125,000180,000156,000345,750X Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisitiorfair value of the noncontrolling Interest was equal to 25 percent of Saul's book value. The balance sheets of the two companies fcJanuary 1, 20X1, are as follows:CashAccounts Receivable.InventoryBuildings and EquipmentLess: Accumulated DepreciationInvestment in Saul CorporationTotal AssetsPENNY MANUFACTURING COMPANYBalance SheetJanuary 1, 20x1CashAccounts ReceivableInventoryBuildings and EquipmentLess: Accumulated DepreciationTotal Assets$ 231,500 Accounts Payable75,000 Bonds Payable.113,000 Common Stock618,000 Additional Paid-In Capital(139,000) Retained Earnings233,250$ 1,131,758 Total Liabilities and Equities$ 159,750380,000181,00031,000380,000$ 1,131,750SAUL CORPORATIONBalance SheetJanuary 1, 20x1$ 61,000 Accounts Payable115,000 Bonds Payable193,000 Common Stock ($10 par)618,000 Additional Paid-In Capital(239,000) Retained Earnings$ 748,000 Total Liabilities and EquitiesOn January 2, 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000.$ 157,000280,000100,00031,000180,000$ 748,000

Consolidation -To generate the consolidated financial statements, consolidation is the process of…

Complete this question by entering your answers in the tabs below. Required A Required B Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Event Credit No Common stock Accounts Debit 125,000

Complete this question by entering your answers in the tabs below. Required A Required B Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Event Credit No Common stock Accounts Debit 125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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