Trial balances for Phan Company and its subsidiary Sato Company on December 31, 2024, are as follows:

Phan Company acquired its investment in Sato Company through open- market purchases of stock as follows:

Required:
Prepare the consolidated financial statement workpaper for Phan Company and its subsidiary Sato Company on December 31, 2024. Use the equity method.

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Current Assets Investment in Sato Company Other Assets Dividends Declared Cost of Goods Sold Other Expenses Liabilities Capital Stock, $10 par Paid in Capital 1/1 Retained Earnings Sales Equity Income Phan $165,500 753,301 920,000 150,000 1,100,000 350,000 $3,438,801 $159,050 600,000 94,412 650,338 1,800,000 135,000 $3,438,800 Sato $218,000 672,000 70,000 325,000 125,000 $1,410,000 $160,000 400,000 250,000 600,000 $1,410,000