$13.)$

Pot Incorporated acquired all Seed Incorporated's outstanding $$27$ par common stock on December $31,20$X$3,$ in exchange for $42,000$ shares of its $$27$ par common stock. Pot's common stock closed at $$58\mathrm{.}50$ per share on a national stock exchange on December $31,20$X$3.$ Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December $31.$

On December $31,20$X$4,$ after year$-$end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts $($below$).$

Pot Incorporated Seed Incorporated

Assets

Cash $ $836,000$ $ $342,000$

Accounts and Other Receivables $2,142,000835,000$

Inventories $2,312,0001,047,000$

Land $650,000308,000$

Depreciable Assets $($net$)4,587,0001,983,000$

Investment in Seed Incorporated $2,833,000$

Long$-$Term Investments and Other Assets $880,000395,000$

Total Assets $ $14,240,000$ $ $4,910,000$

Liabilities and Stockholders' Equity

Accounts Payable and Other Current Liabilities $ $2,460,000$ $ $1,136,000$

Long$-$Term Debt $1,891,0001,287,000$

Common Stock, $$27$ Par Value $3,328,0001,134,000$

Additional Paid$-$In Capital $1,323,000188,000$

Retained Earnings $5,238,0001,165,000$

Total Liabilities and Stockholders' Equity $ $14,240,000$ $ $4,910,000$

Additional Information

Pot uses the equity$-$method of accounting for its investment in Seed.

On December $31,20$X$3,$ Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $$654,000.$ Seed had no land transactions in $20$X$4.$

On June $15,20$X$4,$ Seed paid a cash dividend of $$5$ per share on its common stock.

On December $10,20$X$4,$ Pot paid a cash dividend totaling $$265,000$ on its common stock.

On December $31,20$X$3,$ immediately before the combination, the stockholders' equity balance was:

Pot Incorporated Seed Incorporated

Common Stock $ $2,194,000$ $ $1,134,000$

Additional Paid$-$In Capital $1,645,000188,000$

Retained Earnings $4,018,000789,000$

$ $7,857,000$ $ $2,111,000$

The $20$X$4$ net income amounts according to the separate books of Pot and Seed were $$899,000($exclusive of equity in Seed's earnings$)$ and $$586,000,$ respectively.

Required:

Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December $31,20$X$4.$ A formal consolidated balance sheet is not required

Note: Values in the first two columns $($the "parent" and "subsidiary" balances$)$ that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount anAnswer is not complete.

$\backslash$table$[[$POT INCORPORATED AND SUBSIDIARY$],[$Consolidated Balance Sheet Worksheet$],[$December $31,20$X$4],[,\backslash$table$[[$Pot$],[$Incorporated$]],\backslash$table$[[$Seed$],[$Incorporated$]],$Consolidation Entries,Consolidated$],[,$Debit,Credit$],[$Assets$],[$Cash$,$$ $836,000,$$$342,000,,,$$ $1,178,000],[$Accounts and other receivables,$2,142,000,835,000,,,2,977,000],[$Inventory$,2,312,000,1,047,000,,,3,359,000],[$Land$,650,000,308,000>,346,000>,,1,304,000],[$Depreciable assets $($net$),4,587,000,1,983,000,,,6,570,000],[$Investment in Seed Incorporated,$2,833,000,0$o$.,,,2,833,000],[$Long$-$term investments and other assets,$880,000,395,000>,,,1,275,000],[$Total Assets,$ $14,240,000,$$ $4,910,000,$$ $346,000,$$$0,$$ $19,496,000],[$Liabilities and Stockholders' Equity$],[$Accounts payable and other current liabilities,$ $2,460,000,$$ $1,136,000,,,$$ $3,596,000],[$Long$-$term debt,$1,891,000,1,287,000>,,,3,178,000],[$Common stock,$3,328,000,1,134,000,,,4,462,000],[$Additional Paid$-$in capital,$1,323,000,188,000>,,,1,511,000],[$Retained earnings,$5,238,000,1,165,000,,,6,403,000],[$Total Liabilities and Equity,$ $14,240,000,$$ $4,910,000,$$$0,$$$0,$$ $19,150,000]]$d enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.