The trial balance data presented in Problem 7-35 can be converted to reflect use of the cost method by inserting the following amounts in place of those presented for Randall Corporation:

\section*{Required}

a. Prepare the journal entries that would have been recorded on the books of Randall Corporation during 20X7 under the cost method.

b. Prepare all eliminating entries needed to complete a consolidation workpaper as of December 31, 20X7, assuming Randall uses the cost method.

c. Complete a three-part consolidation workpaper as of December 31, 20X7.

Transcribed Image Text:

Investment in Sharp Company Stock Retained Earnings Income from Subsidiary Dividend Income $280,000 329,900 -0- 20.000