Check my work 3 Proud Corporation acquired 80 percent of Spirited Company voting stock on January 1, 20x3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date Proud uses the equity method in accounting for its ownership of Spirited during 20X3. On December 31, 20X3, the trial balances of the two companies are as follows 25 po 0 36.45 Spirited Company Debit Credit $109,000 335,000 ok 12,000 67,000 25,200 Pet Item Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Spirited Company Proud Corporation Debit Credit $191,000 519,800 119.840 22.000 103.000 55,00 $157,000 35.000 170,640 185.ee 215.be 208,000 39,200 $1,089,840 $1,609,840 ference $ 60,000 25,000 189,00 38,000 38,000 130,000 $530, 200 $530,200 3 Prepare all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. Of no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction lit 25 posts 01:35:50 Consolidation Worksheet Entries BOOK Print Record the basic consolidation entry References Note Enter debits before credits Event Accounts Debit Credit 3 b. Prepare a three-port consolidation worksheet. (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.) 25 points 0135.01 eBook Consolidated Prim References PROUD CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X3 Consolidation Entries Proud Corp Spirited Co DR CR Income Statement Sales Less Depreciation expense Less Other expenses Income from Spirited Co Consolidated Net Income $ 0 $ 0 $ os NCT in Net income Controlling Interest in Net Income $ 0$ 0 $ 0$ Statement of Retained Earnings Beginning balance Net income 0 0 0 Less Dividends declared Ending Balance $ 0$ 0$ OS Balance Sheet Current assets Depreciable assets os OS D 0 05 0 3 Proud Corp Spirited Co. DR CR Consolidated 25 points 2 010440 $ 0$ 0 $ 0$ 05 0 $ 0$ 0$ 0$ 0 $ 0 eBook 0 0 0 0 Print $ 0 $ 01$ 0$ 0 $ 0 Income Statement Sales Less: Depreciation expense Less Other expenses income from Spinted Co Consolidated Net Income NGI in Net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less Dividends declared Ending Balance Balance Sheet Current assets Depreciable assets Less. Accumulated depreciation Investment in Spirited Co Total Assets Liabilities and Equity Current abilities Long-term debt Common stock Retained earnings NCI I NA of Spirited Co. Total Liabilities and Equity References $ 05 0 $ 0$ 0 $ 0 0 0 0 0 5 0 $ 0 $ 0 $ 0 $ 0