Consolidated Totals 0 Accounts Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings Total liabilities and stockholders' equity Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Pavin Stabler Debit Credit $ (815,000) $ (555,000) 480,000 265,000 150,000 183,500 61,000 0 (27,250) 0 0 (133,750) 0 $ (257,750) $ (133,750) (370,000) (411,000) (257,750) (133,750) 180,000 102,000 $ (447,750) $ (442,750) $ 242,000 $ 60,000 200,000 112,000 707,750 0 0 268,750 270,000 566,000 0 0 $ 1,419,750 $ 1,006,750 (113,000) (294,000) (550,000) (125,000) 25,000 0 (334,000) (145,000) (447,750) (442,750) $ (1,419,750) $ (1,006,750) On January 1, 2018, Pavin reports $550.000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500 During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $58,000 for inventory shipped from Pavin during December The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Pavin Stabler Revenues (815, 000) $ (555, ) Cost of goods sold 480, eee 265,000 Expenses 150,00 183, see Interest expense-bonds 61,600 @ Interest income-bond investment @ (27,250) Loss on extinguishment of bonds Equity in Stabler's income (133, 750) Net income $ (257,750) $ 133,750) Retained earnings, 1/1/18 $ (370,000) $ (411,000) Net income (257,758) (133, 750) Dividends paid 180,000 102,000 Retained earnings, 12/31/18 $ (447,750) $ (442,750) Cash and receivables $ 242,800 $ 6e, eee Inventory 200,000 112,000 Investment in Stabler 787,750 Investment in Pavin bonds 268,750 Land, buildings, and equipment (net) 270,000 566,000 Trademarks e Total assets $ 1,419,750 $ 1,006, 750 Accounts payable $ (113,000) $ (294,000) Bonds payable (550,000) (125,000) Discount on bonds 25,000 e Common stock (334,800) (145,000) Retained earnings (above) (447,758) (442,758) Total liabilities and stockholders' equity $ (1,419,750) $(1,896,750) Note: Credits are indicated by parentheses Consolidated Totals 0 Accounts Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings Total liabilities and stockholders' equity Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Pavin Stabler Debit Credit $ (815,000) $ (555,000) 480,000 265,000 150,000 183,500 61,000 0 (27,250) 0 0 (133,750) 0 $ (257,750) $ (133,750) (370,000) (411,000) (257,750) (133,750) 180,000 102,000 $ (447,750) $ (442,750) $ 242,000 $ 60,000 200,000 112,000 707,750 0 0 268,750 270,000 566,000 0 0 $ 1,419,750 $ 1,006,750 (113,000) (294,000) (550,000) (125,000) 25,000 0 (334,000) (145,000) (447,750) (442,750) $ (1,419,750) $ (1,006,750) On January 1, 2018, Pavin reports $550.000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500 During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $58,000 for inventory shipped from Pavin during December The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Pavin Stabler Revenues (815, 000) $ (555, ) Cost of goods sold 480, eee 265,000 Expenses 150,00 183, see Interest expense-bonds 61,600 @ Interest income-bond investment @ (27,250) Loss on extinguishment of bonds Equity in Stabler's income (133, 750) Net income $ (257,750) $ 133,750) Retained earnings, 1/1/18 $ (370,000) $ (411,000) Net income (257,758) (133, 750) Dividends paid 180,000 102,000 Retained earnings, 12/31/18 $ (447,750) $ (442,750) Cash and receivables $ 242,800 $ 6e, eee Inventory 200,000 112,000 Investment in Stabler 787,750 Investment in Pavin bonds 268,750 Land, buildings, and equipment (net) 270,000 566,000 Trademarks e Total assets $ 1,419,750 $ 1,006, 750 Accounts payable $ (113,000) $ (294,000) Bonds payable (550,000) (125,000) Discount on bonds 25,000 e Common stock (334,800) (145,000) Retained earnings (above) (447,758) (442,758) Total liabilities and stockholders' equity $ (1,419,750) $(1,896,750) Note: Credits are indicated by parentheses