Debits Porter Spitz Cash $ 90,000 $ 40,000 Accounts Receivable (net) 62,000 38,000 Inventory 106,000 64,000 Investment in Spitz Company 121,500 Plant Assets 320,000 149,000 Land 69,000 46,000 Dividends Declared, 10/1 50,000 30,000 Total $818,500 $367,000 Credits Porter Spitz Liabilities $102,000 $ 61,000 Common Stock, $2 per value 250,000 100,000 Other Contributed Capital 172,500 20,000 1/1 Retained Earnings 206,500 126,000 Income Summary 87,500 60,000 Total $818,500 $367,000 Porter Company made the following open-market purchase and sate of Spitz Company common stock: January 1, 2007, purchased 45,000 shares for $135,000; May 1, 2011, sold 4,500 shares for $28,000. The book value of Spitz Company's net assets on January 1, 2007, was $140,000; the excess of cost over net assets acquired relates to land. Subsequent changes in the book value of Spitz Company's net assets are entirely attributable to earnings retained in the business. Spitz Company earns its income evenly throughout the year. Porter Company uses the cost method to account for its investment. Required: Prepare a consolidated financial statements workpaper as of December 31, 2011. Begin the income statement section of the workpaper with "Net Income Before Dividend Income" which is $63,200 for Porter Company and $60,000 for Spitz Company