During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $90,000 was transferred at a price of $120,000. All but $20,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $43,000 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 $(770,000) $(525,000)

Cost of goods sold 465,000 250,000

Expenses 135,000 168,500

Interest expensebonds 46,000 0

Interest incomebond investment 0 (17,500)

Loss on extinguishment of bonds 0 0

Equity in Stabler's income (124,000) 0

Net income $(248,000) $(124,000)

Retained earnings, 1/1/18 $(355,000) $(381,000)

Net income (248,000) (124,000)

Dividends paid 165,000 87,000

Retained earnings, 12/31/18 $(438,000) $(418,000)

Cash and receivables $227,000 $45,000

Inventory 185,000 97,000

Investment in Stabler 638,000 0

Investment in Pavin bonds 0 197,500

Land, buildings, and equipment (net) 255,000 551,000

Trademarks 0 0

Total assets $1,305,000 $890,500

Accounts payable $(158,000) $(232,500)

Bonds payable (400,000) (110,000)

Discount on bonds 10,000 0

Common stock (319,000) (130,000)

Retained earnings (above) (438,000) (418,000)

Total liabilities and stockholders' equity $(1,305,000) $(890,500)

Note: Credits are indicated by parentheses.

Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign.)