Astor Corporation acquired 60 percent of the outstanding shares of Shield Company on January 1, 20X7. Balance sheet data for the two companies immediately following the purchase were as follows:

As indicated in the parent company balance sheet, Astor purchased \(\$ 50,000\) of Shield Company bonds from the subsidiary immediately after it purchased the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent \(\$ 10,000\). On the date of combination, the book values and fair values of Shield's assets and liabilities were the same.
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a. Give all eliminating entries needed to prepare a consolidated balance sheet for January 1, 20X7.

b. Complete a consolidated balance sheet workpaper.

c. Prepare a consolidated balance sheet in good form.

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Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Shield Company Stock Investment in Shield Company Bonds Astor Corporation $ 70,000 90.000 Shield Company $ 35,000 65.000 184.000 80.000 400,000 300,000 (160,000) (75,000) 191.000 50.000 Total Assets Accounts Payable $825,000 $405.000 $ 50.000 $ 20.000 Bonds Payable 200,000 100,000 Common Stock 300,000 150,000 Capital in Excess of Par 140.000 Retained Earnings 275.000 (5.000) Total Liabilities and Equities $825,000 $405.000