Check my work 4 25 points 013348 Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The for 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 $56.000 on the acquisition date Proud uses the equity method in accounting for its ownership of Spirited on December 31, 20X4, the trial balances of the two companies are as follows Proud Corporation Spirited Company Iten Debit Credit Debit Credit Current Assets $ 219,000 $169,000 Depreciable Assets see, eee 309,000 Investint in Spirited Company 149,280 Depreciation Expense 24,000 14,000 Other Expenses 148,eee 87,000 Dividends Declared 54,600 25,480 Accumulated Depreciation $198.00 $ 34,000 Current Liabilities 66, 45,000 Long-Term Debt 105,880 162.400 Connon Stock 192,000 97.000 Retained Earnings 276.00 67.ee Sales 230,000 149,000 Income from Spirited Company 38,400 $1,114,280 $1,114,280 5604,42 5604,400 Required: a Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements (If no entry is 4 Required: a Prepare all consolidation entries required on December 31, 20x4 to prepare consolidated financial statements (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 25 points View transaction list & Consolidation Worksheet Entries eBook B Record the basic consolidation entry Print References Not: Enter debits before credits Accounts Debit Credit Event 1 Common stock 4 b Prepare a three part consolidation worksheet as of December 31, 20X4 (Values in the first two columns (the "parent" and "subsidiary" balonces) 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 ponts 303231 PROUD CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X4 Consolidation Entries Proud Corp Spirited Co DR CR book Consolidated Income Statement Print Heerences $ OS 05 os os 0 $ os 0 $ OS 05 0 Sales Less Depreciation expense Less Other expenses Income from Spirited Co Consolidated Net Income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Netincome Less Dividends declared Ending Balance Balance Sheet Current assets 0 0 0 0 S O $ 0$ 0 05 4 Income Statement Sales 25 points $ 0$ 0 $ 0 $ 0 $ 0 01:32:23 S 0 $ os 0 $ 0 $ 0 Book 0 0 0 0 Print S 0 $ OS 0 $ 0 $ 0 Less. Depreciation expense Less Other expenses Income from Spirited Co Consolidated Net Income NC 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 Spinted Co Total Assets Liabilities and Equity Current liabilities Long-term debt Common stock Retained earnings NCI in NA of Spirited Co Total Liabilities and Equity References $ 0 $ 0 $ 0 S 0 $ 0 $ 0 $ 0 $ 0 $ OS 0
