book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows: Credit Scissor Company Debit $ 46,000 60,000 120,000 Cash Accounts Receivable Inventory Investment in Scissor Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Scissor Company Total Paper Company Debit Credit 122,000 140,000 190,000 438,000 250,000 875,000 250,000 65,000 280,000 80,000 $ 565,000 77,000 250,000 625,000 280,000 800,000 93,000 $ 2,690,000 $2,690,000 125,000 250,000 155,000 12,000 50,000 25,000 $ 36,000 27,000 100,000 250,000 120,000 310,000 $843,000 $ 843,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare the journal entries on Paper's books for the acquisition of Scissor on January 1, 20X8, as well as any normal equity method entry(ies) related to the investment in Scissor Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare the journal entries on Paper's books for the acquisition of Scissor on January 1, 20X8, as well as any normal equity method entry(ies) related to the investment in Scissor Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet General Journal Credit No Event AL 1 Debit 107,000 Investment in Scissor Company Cash 107,000 . Prepare a consolidation worksheet for 20X8. (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 chis amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in che credit column of the worksheet.) PAPER COMPANY AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X8 Consolidation Entries Paper Co. Scissor Co. DR CR Consolidated Income Statement Sales Less: Cost of goods sold Less: Depreciation expense Less: Selling & Administrative expense Income from Scissor Co. Net income L $ 0 $ 0 $ 0 $ 0 $ 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Endinn Ralanca Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance $ 0 $ 0 $ 0 $ 0 $ Balance Sheet Assets Cash Accounts receivable Inventory Investment in Scissor Co. Land Buildings & Equipment Less: Accumulated depreciation Total Assets Liabilities & Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Equity i $ 0 $ 0 $ 0 $ 0 $ 0 1 $ 0 % 0 0