(30 points) 3. Complete the workpaper to consolidate the balance sheet for the parent company and subsidiary company, Paris and Shallby Company respectively. Remember that there is a reciprocal account that are the dividends receivables and the dividends payable between both companies. Accounts Paris Company Shallby Company Eliminatons or Adjustment Consolidated Balance Sheet Debit Credit Assets Cash Dividends Receivables Accounts Receivables Land Property. Plant and Equipment Investment in Shallby Company Goodwill Total Assets Liabilities and Stockholders' Equity Accounts Payable Dividends Payable Capital Stock Retained Earnings Noncontrolling Interest Total Liabilities and Stockholders' Equity 4. Prepare the transactions of the eliminations or adjustments that you made in the working papers to carry our the combination of businesses Description of Accounts Debit Credit At January 1, 2021: Paris Company paid $280,000 for a 80% interest in Shallby Company In this moment Shallby's Stockholders' Equity consisted: - Capital Stock S150,000 - Retained Earnings S50,000 Book values of Shallby's net assets were equal to their fair value on this date. The following will be presented the accounts of Paris Company and Shallby Company as December 31, 2021 (balance of the adjusting trial balance): Paris Accounts Cash Dividend Receivables Accounts Receivables Land Property. Plant and Egipment Investment in Shallby Accounts Payable Dividend Payable Capital Sock Retained Earnings (Beg) Dividend Sales Revenues Cost of Goods Sold Operating Expenses Shallby $8.250 $35.000 8,000 40,000 50,000 50,000 30,000 100,000 150,000 ? 40,750 35,000 10,000 150,000 150,000 206,500 50,000 25,000 20,000 400,000 190.000 225,000 125.000 45,000 25,000 Present the Income Statement and the Retained Earnings Statement f Paris Company Income Statement For the year ended December 31, 2021 Sales Revenues $400,000 Less: Cost of Goods Sold (225.000) Gross Profit $175.000 Less: Operating Expenses (45.000) Net Income S130.000 Paris Company Retained Earings Statement For the year ended December 31, 2021 Retained Earnings. Beginnin (Jan. 1.203) Plus: Nei Income $206,500 130,000 $336,500 (25.000) $11.500 Less: Dividends Declared Retained Earnings, Ending (Dec.31.2021) Instructions (20 points) 1. You must analyze the data to calculate the implied fair value of Shallby Company and determine if there is any excess, which will be complete for goodwill 2. Complete the following table with the controlling interest and noncontrolling interest values Controlling Interest Noncong N0% Int. 2014 Initial Investment Plus: Net Income Less: Dividend Ending lovestment Present the Income Statement and the Retained Earnings Statement Shallby Company Income Statement For the year ended December 31, 2021 Sales Reyences $190,000 Less Cafe of Goods Sold (125.000 Gross Pro $65.000 Less; Operating Expenses (25.000 Net Incoche $40.000 Shallby Company Retained Earnings Statement For the year ended December 31, 2021 Retained Earnings, Beginning (Jan. 12050) Plus: Not income $50,000 40,000 $90,000 (20.000) $70.000 Less Dividends Declared Retained Famings, Ending (Dec 31.2021) (30 points) 3. Complete the workpaper to consolidate the balance sheet for the parent company and subsidiary company, Paris and Shallby Company respectively. Remember that there is a reciprocal account that are the dividends receivables and the dividends payable between both companies. Accounts Paris Company Shallby Company Eliminatons or Adjustment Consolidated Balance Sheet Debit Credit Assets Cash Dividends Receivables Accounts Receivables Land Property. Plant and Equipment Investment in Shallby Company Goodwill Total Assets Liabilities and Stockholders' Equity Accounts Payable Dividends Payable Capital Stock Retained Earnings Noncontrolling Interest Total Liabilities and Stockholders' Equity 4. Prepare the transactions of the eliminations or adjustments that you made in the working papers to carry our the combination of businesses Description of Accounts Debit Credit At January 1, 2021: Paris Company paid $280,000 for a 80% interest in Shallby Company In this moment Shallby's Stockholders' Equity consisted: - Capital Stock S150,000 - Retained Earnings S50,000 Book values of Shallby's net assets were equal to their fair value on this date. The following will be presented the accounts of Paris Company and Shallby Company as December 31, 2021 (balance of the adjusting trial balance): Paris Accounts Cash Dividend Receivables Accounts Receivables Land Property. Plant and Egipment Investment in Shallby Accounts Payable Dividend Payable Capital Sock Retained Earnings (Beg) Dividend Sales Revenues Cost of Goods Sold Operating Expenses Shallby $8.250 $35.000 8,000 40,000 50,000 50,000 30,000 100,000 150,000 ? 40,750 35,000 10,000 150,000 150,000 206,500 50,000 25,000 20,000 400,000 190.000 225,000 125.000 45,000 25,000 Present the Income Statement and the Retained Earnings Statement f Paris Company Income Statement For the year ended December 31, 2021 Sales Revenues $400,000 Less: Cost of Goods Sold (225.000) Gross Profit $175.000 Less: Operating Expenses (45.000) Net Income S130.000 Paris Company Retained Earings Statement For the year ended December 31, 2021 Retained Earnings. Beginnin (Jan. 1.203) Plus: Nei Income $206,500 130,000 $336,500 (25.000) $11.500 Less: Dividends Declared Retained Earnings, Ending (Dec.31.2021) Instructions (20 points) 1. You must analyze the data to calculate the implied fair value of Shallby Company and determine if there is any excess, which will be complete for goodwill 2. Complete the following table with the controlling interest and noncontrolling interest values Controlling Interest Noncong N0% Int. 2014 Initial Investment Plus: Net Income Less: Dividend Ending lovestment Present the Income Statement and the Retained Earnings Statement Shallby Company Income Statement For the year ended December 31, 2021 Sales Reyences $190,000 Less Cafe of Goods Sold (125.000 Gross Pro $65.000 Less; Operating Expenses (25.000 Net Incoche $40.000 Shallby Company Retained Earnings Statement For the year ended December 31, 2021 Retained Earnings, Beginning (Jan. 12050) Plus: Not income $50,000 40,000 $90,000 (20.000) $70.000 Less Dividends Declared Retained Famings, Ending (Dec 31.2021)