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Consolidated Statement of financial position Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC's
Consolidated Statement of financial position Johnson PLC acquires 80 percent of Steven PLC for $2,080,000 on January 1, 2020. The book values of Steven PLC's assets and liabilities are equal to the fair values which equals $2,500,000 Steven PLC reports net income of $500,000 during the year. Dividends of S200,000 are declared by Steven PLC on December 5. These dividends are to be paid next year. The balance sheets of Johnson PLC and Steven PLC at December 31, 2020 are as follows: Steven PLC Johnson PLC Book Value 300,000 400,000 Johnson PLC Fair Value 300.000 390,000 Cash Accounts receivable, 80,000 200,000 nct 160.000 1.000.000 2.000.000 1,600,000 ? 160.000 1.200,000 2.500,000 1.800,000 -0- 800,000 1,000,000 1.400.000 Dividends receivable Equipment net Building-net Land Investment in David PLC Total Assets Accounts payable Dividends payable Notes payable Capital stock Retained carnings Total liabilities and cquity 7,780,000 500.000 100,000 1,000,000 2.000.000 4.180,000 7.780,000 8,670,000 500.000 100,000 1,000,000 3.480,000 80,000 200,000 400,000 1.000.000 1.800.000 3.480,000 Johnson PLC accounts payable includes $100,000 owed to Steven PL.C. Required: 1. Prepare consolidated balance sheet Johnson PLC and Subsidiary at December 31, 2020 2. Prepare consolidated balance sheet workpapers for Johnson PLC and Subsidiary at December 31, 2020 3. Prepare the elimination entries for the group at December 31, 2020
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