The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent owned subsidiary Hingle Company contained the following summarized amounts:

Doorst purchased the shares of Hingle Company at underlying book value on January 1, 20X7. On December 31, 20X8, the balance sheet of Doorst contains inventory items purchased from Hingle for \(\$ 95,000\). The items cost Hingle \(\$ 55,000\) to produce. In addition, Hingle's inventory contains goods it purchased from Doorst for \(\$ 25,000\) that Doorst had produced for \(\$ 15,000\).
\section*{Required}

a. Prepare all eliminating entries needed to complete a consolidated balance sheet workpaper as of December \(31,20 \times 8\).

b. Prepare a consolidated balance sheet workpaper as of December 31, 20X8 .

Transcribed Image Text:

Cash and Receivables Inventory Doorst Corporation and Hingle Company Balance Sheets December 31, 20X8 Doorst Corporation Hingle Company $ 98.000 150,000 310.000 $ 40,000 100.000 280.000 Common Stock Buildings and Equipment (net) Investment in Hingle Company Stock Total Assets Accounts Payable 280,000 $838,000 $ 70,000 200.000 Retained Earnings 568,000 $420,000 $ 20,000 150.000 250.000 Total Liabilities and Equity $838,000 $420.000