e. Prepare the consolidation worksheet for the period ended December 31, 2020. You may use the template provided below OR the

template on the next page. (50 POINTS)

PRIYA CORPORATION

Consolidation Worksheet

For the Period Ending December 31, 2020

PRIYA'S SHELD O N ' S CONSOLIDATION ENTRIES Consolidated

Accounts G/L G/L Debit Credit Totals

Income Statement

Sales $ 790,400 $ 512,600

Less: Cost of Goods Sold $ (328,000) $ (207,000)

Less: Depreciation Expense, Building $ (56,800) $ (19,200)

Less: Depreciation Expense, Equipment $ (43,100) $ (23,400)

Less: Selling & Administrative Expense $ (137,000) $ (116,800)

Less: Goodwill Impairment Loss

Income from Sheldon Corp. $ 7 7,910

Consolidated Net Income $ 303,410 $ 146,200

NCI in Net Income

Controlling Interest in Net Income $ 303,410 $ 146,200

Statement of Retained Earnings

Retained Earnings (01/01/2020) $ 908,000 $ 159,000

Net income (above) $ 303,410 $ 146,200

Dividends Declared $ (70,000) $ (40,000)

Retained earnings, 12/31/20 $ 1,141,410 $ 265,200

Balance Sheet

Cash $ 836,300 $ 262,700

Accounts Receivable $ 249,000 $ 149,000

Inventory $ 437,000 $ 195,000

Investment in Sheldon Corp. $ 735,210

Buildings $ 652,000 $ 169,000

Land $ 709,000 $ 283,000

Equipment $ 513,000 $ 232,000

Accumulated Depreciation, Bldg $ (227,200) $ (57,600)

Accumulated Depreciation, Equip $ (172,400) $ (93,600)

Goodwill (NEW)

Total Assets $ 3,731,910 $ 1,139,500

Accounts Payable $ 187,000 $ 174,900

Bonds Payable $ 450,000 $ 7 8,400

Common Stock ($1 par) $ 695,000 $ 273,000

Additional Paid In Capital $ 1,258,500 $ 348,000

Retained earnings, 12/31/20 (above) $ 1,141,410 $ 265,200

NCI in Net Assets

Total Liabilities & Stockholders' Equity $ 3,731,910 $ 1,139,500

$ 1,192,700 $ 1,192,700

NET ASSETS

(CONTROLLING INTEREST)

ASSETS - LIABILITIES ASSETS - LIABILITIES - NCINA

TOTAL STOCKHOLDERS' EQUITY TOTAL STOCKHOLDERS' EQUITY

(CONTROLLING INTEREST)

Priya Corporation acquired 70 percent of Sheldon Company stock on January 1, 2020 for $685,300 cash. The fair market value of the 30 percent noncontrolling interest on this date was $293,700. Following are trial balances of Priya Corporation and Sheldon Company as of December 31, 2020- Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipment Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) Additional Paid in Capital Retained Earnings (01/01/2020) $ $ $ $ $ $ $ $ $ $ $ $ PRIYA CORPORATION Debit Credit 836,300 249,000 437,000 735,210 652,000 709,000 513,000 328,000 56,800 43,100 137,000 70,000 $ 227,200 $ 172,400 $ 187,000 $ 450,000 $ 695,000 $ 1,258,500 $ 908,000 $ 790,400 $ 77 910 4,766,410 $ 4,766,410 SHELDON COMPANY Debit Credit $ 262,700 $ 149,000 $ 195,000 $ $ 169,000 $ 283,000 $ 232,000 $ 207,000 $ 19,200 $ 23.400 $ 116,800 $ 40,000 $ 57,600 $ 93,600 $ 174,900 $ 78,400 $ 273,000 $ 348,000 $ 159,000 $ 512,600 $ $ 1,697,100 $ 1,697.100 Sales Income from Sheldon Corp. $ Additional information: 1. On January 1, 2020 the fair market value of Sheldon's assets equaled their book value with the exception of Inventory-was undervalued by $10,000 (all this inventory was sold during 2020). Building-was undervalued by $85,000 (remaining useful life was estimated to be 10 years). Land - was by overvalued $24,000 Equipment - was overvalued by $28,000 (remaining useful life was estimated to be 4 years). The new Goodwill from the acquisition was impaired by $23,400 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the JOURNAL ENTRIES that were recorded by Priya at the acquisition date and during 2020 to account for its investment in Sheldon Company. These boldface figures should be used a check figures in your solution