B C D H Pepper Company Item E F G Consolidation Entries Debit Credit Salsa Company Consolidated Current Assets Buildings & Equipment Land Investment in Salsa Co. Stock Other Assets Total Debits 140,000 375,000 40,000 475,000 500,000 175,000 300,000 50,000 1,500,000 615,000 875,000 215,000 300,000 70,000 2,075,000 20,000 575,000 Accumulated Depreciation Current Liabilities Bonds Payable Common Stock Additional Paid-in Capital Retained Earings Total Credits 100,000 100,000 200,000 130,000 670,000 300,000 1,500,000 75,000 100,000 100,000 20,000 180,000 100,000 575,000 175,000 200,000 300,000 150,000 850,000 400,000 2,075,000 On December 31, Year 1, Pepper Company acquired 100% of the common stock of Salsa Company, at book value, by issuing 15,000 shares of Pepe's $2 par common stock with a market value of $20 per share. Summarized balance sheet data for the two companies can be found on the Excel workpapers which are posted on Blackboard. At December 31, Year 1 and Year 2, Salsa owed Pepe $10,000 on account. There were no intercompany receivables/payables at 12/3/1 Year 3. Required: Prepare the consolidation workpapers for Years 1 (above) 12-31-X1 Sheet1 +