College of Business Administration Academic Year 2020 2021, Fall Semester Advanced Accounting ACC 410 Marks Obtained: Maximum Time Allowed: Total Marks: 10 Student ID Name of Student: CLO2 Assignment 1 Perez Company purchased 90% of the common stock of Sanchez, Inc. on January 1, 2018, for $85,000. Sanchez Inc had capital stock of $70,000 and retained earnings of $12,000 at that time. Trial balances at the end of 2019 for the companies were: Perez Sanchez Cash S13,000 $14,000 Accounts Receivable 22.000 36.000 Inventory, 1/1 14,000 8,000 Advance to Sanchez Company 8.000 Purchases 84,000 20.000 Other Expenses 10,000 16,000 Plant Assets 67,800 50,000 Dividends Declared 10,000 12,000 Investment in Sanchez Inc. 85,000 Total Debits $313.800 S 156,000 Accounts Payable 6,000 6,000 Other Liabilities 37,000 Advances from Perez Company 8.000 Common Stock, Spar 100,000 70,000 Retained Earnings, 1/1 50,000 30,000 Sales 110,000 42.000 Dividend Income 10.800 Total Credits S 313.800 S 156,000 Inventory 31/12 $40,000 SI5.000 Hint: Exclude dividend income. Approximate decimals if any! Required: Prepare a workpaper for the preparation of consolidated financial statements on December 31, 2019. Show all necessary calculation and recommended to use excel format