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

Pint acquired the shares of Saloon Company on January 1, 20X7. On December 31, 20X8, assume Pint sold inventory to Saloon during 20X8 for $100,000 and Saloon sold inventory to Pint for $300,000. Pint’s balance sheet contains inventory items purchased from Saloon for $95,000. The items cost Saloon $55,000 to produce. In addition, Saloon’s inventory contains goods it purchased from Pint for $25,000 that Pint had produced for $15,000. Assume Saloon reported net income of $70,000 and dividends of $14,000.

Required

a. Prepare all consolidation entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8.

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

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PINT CORPORATION AND SALOON COMPANY Balance Sheets December 31, 20X8 Cash & Receivables Inventory Buildings & Equipment (net) Investment in Saloon Company Total Assets Accounts Payable Common Stock Retained Earnings Total Liabilities & Equity Pint Corporation $ 98,000 150,000 310,000 242,000 $800,000 $ 70,000 200,000 530,000 $800,000 Saloon Company $ 40,000 100,000 280,000 $420,000 $ 20,000 150,000 250,000 $420,000