Shady Lane Manufacturing Company holds 75 percent of the common stock of Tin Products Corporation. The balance sheets of the two companies for January 1, 20X1, are as follows:

On January 2, 20X1, Shady Lane purchased an additional 2500 shares of common stock directly from Tin Products for \(\$ 150,000\). Any purchase differential is assigned to buildings and equipment.
\section*{Required}

a. Prepare the eliminating entry or entries needed to complete a consolidated balance sheet workpaper immediately following the issuance of additional shares to Shady Lane.
\(b\). Prepare a consolidated balance sheet workpaper immediately following the issuance of additional shares to Shady Lane.

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Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Tin Products Total Assets Shady Lane Manufacturing Company Balance Sheet January 1, 20X1 $ 227,500 Accounts Payable $ 50,000 60.000 Bonds Payable 100,000 600.000 (150,000) Common Stock Additional Paid-In Capital Retained Earnings 400,000 200,000 50.000 400.000 262,500 $1,100,000 Total Liabilities and Equities $1,100,000