019 Excel Spreadsheet Assignment #2 (40 Points): On January 1, 2019, Puget Sound Corporation bought o of the stock of Sweden Corporation for $700,000. The Balance Sheets of the two companies immediately after the acquisition (January 1, 2019) of Sweden Corp. showed the following amounts: Puget Sound Sweden Cash $ 140,000 $100,000 Accounts Receivable 110,000 30,000 Inventory 500,000 10,000 Land 400,000 140,000 Buildings & Equipment - Net 1,000,000 420,000 Investment in Sweden 700,000 Total Assets 2,850,000 700,000 $ 410,000 1,090,000 1,000,000 Accounts Payable Long-Term Liabilities Common Stock Additional Paid in Capital Retained Earnings Total Liabilities and Stockholders' Equity 80,000 20,000 400,000 100,000 100,000 350,000 $2,850,000 700,000 On the date of acquisition, the Book Value of Sweden equaled its Fair Market Value, except for land that had a fair market value of 200,000, the fair value of previously unrecorded identifiable intangibles (2-year life) of Sweden was $40,000, and the NonControlling Interest's fair value is $175,000. Puget Sound used the equity method to record its investment in Sweden. During 2019, Puget Sound found that a $7,000 impairment of goodwill took place during 2019. At the end of 2019, Puget Sound owed Sweden $30,000, and Sweden owed Puget Sound $40,000. The following is the trial balance data for Puget Sound and Sweden on December 31, 2019: Puget Sound Sweden Debits: Cash $ 290,000 $ 100,000 Accounts Receivable 210,000 190,000 Inventory 400,000 50,000 Land 300,000 140,000 Buildings & Equipment-Net 1,100,000 330,000 Investment in Sweden 758,400 Cost of Goods Sold 550,000 220,000 Depreciation Expense 130,000 50,000 Other Expenses 20,000 30,000 Dividends Declared 100,000 50,000 $3,858,400 1,160,000 Credits: Accounts Payable $ 400,000 100,000 Long-Term Liabilities 1,100,000 10,000 Common Stock 1,000,000 400,000 Additional Paid in Capital 100,000 Retained Earnings, Jan. 1 350,000 100,000 Sales 910,000 450,000 Income from Subsidiary 98,400 $3,858,400 1,160,000 Required: Prepare the journal entries Puget Sound made during 2019 related to its investment in Sweden. Dronare the consolidation eliminating entries needed to consolidate the two companies at the end of 2019, e the consolidation working paper. Show all necessary elimination entries in their proper columns. custem for each EE, such as a, b, c. Follow syllabus requirements for assignment, including formatting Working paper should be similar to Figure 5-4. Key pages for this assignment are pages 193 to 197. 019 Excel Spreadsheet Assignment #2 (40 Points): On January 1, 2019, Puget Sound Corporation bought o of the stock of Sweden Corporation for $700,000. The Balance Sheets of the two companies immediately after the acquisition (January 1, 2019) of Sweden Corp. showed the following amounts: Puget Sound Sweden Cash $ 140,000 $100,000 Accounts Receivable 110,000 30,000 Inventory 500,000 10,000 Land 400,000 140,000 Buildings & Equipment - Net 1,000,000 420,000 Investment in Sweden 700,000 Total Assets 2,850,000 700,000 $ 410,000 1,090,000 1,000,000 Accounts Payable Long-Term Liabilities Common Stock Additional Paid in Capital Retained Earnings Total Liabilities and Stockholders' Equity 80,000 20,000 400,000 100,000 100,000 350,000 $2,850,000 700,000 On the date of acquisition, the Book Value of Sweden equaled its Fair Market Value, except for land that had a fair market value of 200,000, the fair value of previously unrecorded identifiable intangibles (2-year life) of Sweden was $40,000, and the NonControlling Interest's fair value is $175,000. Puget Sound used the equity method to record its investment in Sweden. During 2019, Puget Sound found that a $7,000 impairment of goodwill took place during 2019. At the end of 2019, Puget Sound owed Sweden $30,000, and Sweden owed Puget Sound $40,000. The following is the trial balance data for Puget Sound and Sweden on December 31, 2019: Puget Sound Sweden Debits: Cash $ 290,000 $ 100,000 Accounts Receivable 210,000 190,000 Inventory 400,000 50,000 Land 300,000 140,000 Buildings & Equipment-Net 1,100,000 330,000 Investment in Sweden 758,400 Cost of Goods Sold 550,000 220,000 Depreciation Expense 130,000 50,000 Other Expenses 20,000 30,000 Dividends Declared 100,000 50,000 $3,858,400 1,160,000 Credits: Accounts Payable $ 400,000 100,000 Long-Term Liabilities 1,100,000 10,000 Common Stock 1,000,000 400,000 Additional Paid in Capital 100,000 Retained Earnings, Jan. 1 350,000 100,000 Sales 910,000 450,000 Income from Subsidiary 98,400 $3,858,400 1,160,000 Required: Prepare the journal entries Puget Sound made during 2019 related to its investment in Sweden. Dronare the consolidation eliminating entries needed to consolidate the two companies at the end of 2019, e the consolidation working paper. Show all necessary elimination entries in their proper columns. custem for each EE, such as a, b, c. Follow syllabus requirements for assignment, including formatting Working paper should be similar to Figure 5-4. Key pages for this assignment are pages 193 to 197