Big Corp. acquired all of the outstanding shares of Little Inc. on January 1, 2016, for $644,000 in cash.Of this consideration transferred, $42,000 was attributed to equipment with a ten-year remaining useful life.Goodwill of $56,000 had also been identified.Big applied the partial equity method so that income would be accrued each period based solely on the earnings reported by the subsidiary.

On January 1, 2018 Big Corp. sold Land with a book value of $15,000 to Little for $20,000. Little continues to hold the land.

On January 1, 2019, Big reported $280,000 in bonds outstanding with a book value of $263,200.Little purchased half of these bonds on the open market for $135,800.

During 2019, Big began to sell merchandise to little.During that year, inventory costing $112,000 was transferred at a price of $140,000.All but $14,000 (at Big's selling price) of these goods were resold to outside parties by year's end.Little still owed $50,400 for inventory shipped from Big during December.

The following financial figures were for the two companies for the year ended December 31, 2019.

The following financial figures were for the two companies for the year ended December 31, 2019.

Big Corp.

Little Inc.

Revenues

$(894,600)

$(652,400)

Cost of goods sold

483,000

277,200

Expenses

187,600

225,400

Interest expense-bonds

33,600

0

Interest income-bond investment

0

(15,400)

Equity in income of Little Inc.

(165,200)

0

Net income

$(355,600)

$(165,200)

Retained earnings, January 1, 2019

$(483,000)

$(505,400)

Net income

(355,600)

(165,200)

Dividends paid

217,000

85,400

Retained earnings, December 31, 2019

$(621,600)

$(585,200)

Cash and receivables

$186,200

$109,200

Inventory

239,400

121,800

Investment in Little Inc.

851,200

0

Investment in Big Corp. bonds

0

137,200

Land

30,000

60,000

Buildings, and equipment (net)

318,600

697,400

Total assets

$ 1,625,400

$1,125,600

Accounts payable

$(315,000)

$(232,400)

Bonds payable

(280,000)

(140,000)

Discount on bonds payable

11,200

0

Common stock

(420,000)

(168,000)

Retained earnings, December 31, 2019

(621,600)

(585,200)

Total liabilities and stockholders' equity

$(1,625,400)

$(1,125,600)

Required:

1.Prepare a consolidation worksheet for the year ended December 31, 2019 (on Excel), in good form.

Prepare the consolidation journal entries