For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies.

	Padre		Sierra
Revenues	$	(1,561,700	)		$	(614,050	)
Cost of goods sold		771,000				440,000
Depreciation expense		310,000				17,800
Amortization expense		0				5,150
Interest expense		48,900				6,100
Equity in income of Sierra		(113,200	)			0
Net income	$	(545,000	)		$	(145,000	)
Retained earnings, 1/1/21	$	(1,447,500	)		$	(502,000	)
Net income		(545,000	)			(145,000	)
Dividends declared		260,000				65,000
Retained earnings, 12/31/21	$	(1,732,500	)		$	(582,000	)
Current assets	$	1,207,740			$	698,950
Investment in Sierra		851,760				0
Land		311,000				61,000
Buildings and equipment (net)		904,000				266,200
Copyright		0				97,850
Total assets	$	3,274,500			$	1,124,000
Accounts payable	$	(283,000	)		$	(198,000	)
Notes payable		(509,000	)			(184,000	)
Common stock		(300,000	)			(100,000	)
Additional paid-in capital		(450,000	)			(60,000	)
Retained earnings (above)		(1,732,500	)			(582,000	)
Total liabilities and equities	$	(3,274,500	)		$	(1,124,000	)

At year-end, there were no intra-entity receivables or payables.

Prepare a worksheet to consolidate the financial statements of these two companies. (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. Input all amounts as positive values.)

PADRE INC., AND SIERRA CORPORATION
Consolidated Worksheet
For Year Ending December 31, 2021
			Consolidation Entries
Accounts	Padre	Sierra	Debit	Credit	Noncontrolling Interest	Consolidated Totals
Revenues	$ (1,561,700)	$ (614,050)
Cost of goods sold	771,000	440,000
Depreciation expense	310,000	17,800
Amortization expense	0	5,150
Interest expense	48,900	6,100
Equity in income of Sierra	(113,200)	0
Separate company net income	$ (545,000)	$ (145,000)
Consolidated net income
NI to noncontrolling interest
NI to Padre Company
Retained earnings, 1/1/21	$ (1,447,500)	$ (502,000)
Net income	(545,000)	(145,000)
Dividends declared	260,000	65,000
Retained earnings, 12/31/21	$ (1,732,500)	$ (582,000)
Current assets	$ 1,207,740	$ 698,950
Investment in Sierra	851,760	0
Land	311,000	61,000
Buildings and equipment (net)	904,000	266,200
Copyright	0	97,850
Total assets	$ 3,274,500	$ 1,124,000
Accounts payable	$ (283,000)	$ (198,000)
Notes payable	(509,000)	(184,000)
NCI in Sierra 1/1
NCI in Sierra 12/31
Common stock	(300,000)	(100,000)
Additional paid-in capital	(450,000)	(60,000)
Retained earnings (above)	(1,732,500)	(582,000)
Total liabilities and equities	$ (3,274,500)	$ (1,124,000)