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. Prior to control, Phan used the equity method to account for the investment, but after control, Phan uses the cost 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 Dividend Income Phan $165,500 635,612 920,000 150,000 1,100,000 350,000 $3,321,112 $159,050 600,000 94,412 604,650 1,800,000 63,000 $3,321,112 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