Consolidation Entries Parent Subsidiary Dr Cr Consolidated 4 Assets: Cash 4,600,000 339,000 6 Accounts receivable 1,900,000 522,000 Inventory 2,900,000 670,500 8 Equity investment 2,678,000 0 Property, plant and equipment (PPE), net 14,000,000 1,240,500 Patent 2 Goodwill 26,078,000 2,772,000 0 4 Liabilities and stockholders' equity: 5 Accounts payable 968,000 190,500 Accrued liabilities 1,150,000 331,500 7 Long-term liabilities 4,460,000 750,000 8 Common stock 3,600,000 150,000 9 APIC 8,400,000 187,500 0 Retained earnings 7,500,000 1,162,500 26,078,000 2,772,000 0 0