b. Prepare all consolidating entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare a three-part worksheet as of December 31, 20X5. (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 and 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.)

In Part b) please help record the optional accumulated depreciation consolidation entry.

In Part c) something is missing but I can't figure out what it is. Please help.

Prime Corporation acquired 100 percent ownership of Steak Products Company on January 1, 20X1, for $200,000. On that date, Steak reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Prime has used the equity method in accounting for its investment in Steak. The trial balances for the two companies on December 31, 20X5, appear below. Steak Products Company Debit Credit $ 65,000 90,000 80,000 150,000 Item Cash & Receivables Inventory Land Buildings & Equipment Investment in Steak Products Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Steak Products Prime Corporation Debit Credit 43,000 260,000 80,000 500,000 235,000 120,000 25,000 15,000 30,000 $ 205,000 60,000 200,000 300,000 318,000 200,000 25,000 $1,308,000 $1,308,000 50,000 15,000 5,000 10,000 $105,000 20,000 50,000 100,000 90,000 100,000 $465,000 $465,000 Additional Information: 1. On the date of combination (five years ago), the fair value of Steak's depreciable assets was $50,000 more than the book value. Accumulated depreciation at that date was $10,000. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $10,000 of intercorporate receivables and payables at the end of 20X5. Required: a. Prepare all journal entries that Prime recorded during 20X5 related to its investment in Steak. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete and correct. No Event General Journal Debit Credit 1 Investment in Steak Products 30,000 Income from Steak Products 30,000 B 2 10,000 Cash and receivables Investment in Steak Products 10,000 3 Income from Steak Products 5,000 > Investment in Steak Products 5,000 No Event Accounts Debit Credit A 1 Common stock Retained earnings 100,000 90,000 30,000 Income from Steak Products Dividends declared 10,000 Investment in Steak Products 210,000 B 2 Depreciation expense 5,000 Income from Steak Products 5,000 3 50,000 Buildings and equipment Investment in Steak Products 25,000 Accumulated depreciation 25,000 D 4 10,000 Accounts payable Cash and receivables 10,000 E 5 180,000 X Accumulated depreciation Buildings and equipment 180,000 X PRIME CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X5 Consolidation Entries Prime Steak DR CR Corp. Products Consolidated $ $ 100,000 (50,000) (15,000) (5,000) 5,000 $ 200,000 (120,000) (25,000) (15,000) 25,000 $ 65,000 300,000 (170,000) (45,000) (20,000) 0 65,000 30,000 35,000 5,000 5,000 $ 30,000 $ $ $ $ $ Income Statement Sales Less: COGS Less: Depreciation expense Less: Inventory losses Income from Steak Products Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets Cash and receivables Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Steak Products 90,000 35,000 $ $ 318,000 65,000 (30,000) $ 353,000 90,000 $ 30,000 (10,000) 110,000 $ 5,000 10,000 15,000 318,000 65,000 (30,000) 353,000 $ 125,000 $ $ $ $ $ $ 10,000 $ 43,000 260,000 80,000 500,000 (205,000) 235,000 65,000 90,000 80,000 150,000 (105,000) 98,000 350,000 160,000 700,000 (335,000) 0 50,000 25,000 235,000 Goodwill 0 0 $ 913,000 $ 280,000 $ 50,000 $ 270,000 $ 973,000 $ $ $ 10,000 $ Total Assets Liabilities & Equity Accounts payable Notes payable Common stock Retained earnings Total Liabilities & Equity 60,000 200,000 300,000 353,000 913,000 20,000 50,000 100,000 110,000 280,000 100,000 125,000 235,000 70,000 250,000 300,000 353,000 973,000 15,000 15,000 $ $ $ $ $