Polka Corporation acquired 100 percent of Song Company’s voting stock on January 1, 20X4, at underlying book value. Polka uses the equity method in accounting for its ownership of Song. On December 31, 20X4, the trial balances of the two companies are as follows:

Required

a. Give all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements.

b. Prepare a three-part consolidation worksheet as of December 31, 20X4.

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Itom Current Assets Depreciable Assets Investment in Song Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Song Company Polka Corporation Dobit $ 238,000 500.000 190,000 25,000 150.000 50,000 $1,153,000 Credit $ 200,000 70,000 100,000 200,000 318,000 230.000 35,000 $1,153,000 Song Company Dobit $150,000 300,000 15,000 90,000 15,000 $570,000 Credit $ 90,000 50,000 120.000 100,000 70,000 140,000 $570,000