Consolidation Worksheet Pya Inc., which is a calendar-year-reporting company, acquired 100%

of Sya Inc.’s outstanding common stock at a cost of $325,000 on 12/31/05. The analysis of Pya’s investment account by the individual components of the major conceptual elements as of the ac¬

quisition date is as follows:

Each company’s financial statements for the year ended 12/31/05 immediately after the acquisition are as follows;
Pya Inc. Sya Inc.
Income Statement (2005)
Sales Cost of .
sales .
Expenses .
Net Income .
Balance Sheet (as of 12/31/05)
Accounts Cash .
receivable, net. . . .
Inventory .
Investment in Sya (total cost)
Land .
Buildings and equipment . . .
Accumulated depreciation . . .
Total Assets .
Payables and accruals .
Common Long-term stock debt . .
Retained earnings .
Total Liabilities and Equity Dividends declared in 2005 . .
$ 900,000 (500,000)
(260,000)
$ 140,000 $ 45,000 7 105,000 325,000 100,000 250,000 (150,000)
$ 750,000 $ 80,000 20,000 300,000 350,000 $ 750,000 $ 80,000 $ 500,000 (250,000)
(202,000)
$ 48,000 $ 20,000 70,000 80,000 70,000 204,000 (44,000)
$ 400,000 $ 60,000 150,000 100,000 90,000 $ 400,000 $ 10,000 Required 1. Prepare all consolidation entries as of 12/31/05. (First split the Investment account into the book value element and the excess cost elements.)
2. Prepare a consolidation worksheet as of 12/31/05.