Advanced accounting

Consolidated Statement of financial position Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC's assets and liabilities are equal to the fair values which equals $2,500,000. Steven PLC reports net income of $500,000 during the year. Dividends of $200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Johnson PLC Book Johnson PLC Fair Steven PLC Value Value Cash 300,000 300,000 80,000 Accounts receivable, 400,000 390,000 200,000 net Dividends receivable 160,000 160,000 -0- Equipment-net 1,000,000 1,200,000 800,000 Building-net 2,000,000 2,500,000 1,000,000 Land 1,600,000 1,800,000 1,400,000 Investment in David ? ? -0- PLC Total Assets 7,780,000 8,670,000 3,480,000 Accounts payable 500,000 500,000 80,000 Dividends payable 100,000 100,000 200,000 Notes payable 1,000,000 1,000,000 400,000 Capital stock 2,000,000 1,000,000 Retained earnings 4,180,000 1,800,000 Total liabilities and 7,780,000 3,480,000 equity Johnson PLC accounts payable includes $100,000 owed to Steven PLC. Required: 1. Prepare consolidated balance sheet Johnson PLC and Subsidiary at December 31, 2020. 2. Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary at December 31, 2020. 3. Prepare the elimination entries for the group at December 31, 2020