Simon Corporation purchased 100 percent of the common stock of Faith Corporation on December \(31,20 \mathrm{X} 2\), for \(\$ 150,000\). Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

At the date of the business combination, the book values of Faith's net assets and liabilities approximated fair value.
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a. Give the eliminating entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

b. Prepare a consolidated balance sheet workpaper.

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Cash Item Simon Corporation $ 65.000 Faith Corporation $ 18.000 37.000 Accounts Receivable 87.000 Inventory 110,000 60,000 Buildings and Equipment (net) 220.000 150.000 Investment in Faith Corporation Stock 150,000 Total Assets $632,000 $265,000