Ignment i Penn Corporation purchased 80 percent ownership of State Company on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling Interest was equal to 20 percent of the book value of State. On January 1, 20X4, Penn sold 2,000 shares of State's stock for $65,000 to Nonaffiliated Company and recorded a $10,000 Increase in additional pald-in capital. Trial balances for the companies on December 31, 20X4, contain the following data: Cash Accounts Receivable Inventory Buildings and Equipment Investment in State Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Sales Income from State Total Penn Corporation Debit $ 36,000 79,000 122,000 660,000 187,200 205,000 20,000 22,000 22,000 Credit State Company Debit $ 41,000 59,000 102,000 276,000 95,000 15,000 26,000 17,000 $ 167,000 163,000 165,000 200,000 67,000 295,000 271,000 25,200 $ 1,353,200 $ 1,353,200 $ 625,000 Credit Required: a. Prepare the consolidation entries needed to complete a worksheet for 20X4. b. Prepare a consolidation worksheet for 20X4. $ 92,000 46,000 22,000 100,000 27,000 160,000 178,090 Saved $625,000 State's net Income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20X4. Penn uses the equity method in accounting for Its Investment in State.

Journal entry worksheet Penn Corporaton purchased 80 percent ownership of State Company on January 1,202 at underlytng book value. At that date, the fair value of the noncontrolling Interest was equal to 20 percent of the book value of State. On January 1.204. Penn sold 2,000 shares of State's stock for $65,000 to Nonaffilated Company and recorded a $10,000 increase in additional paid-in capital. Thtal balances for the companies on December 31,204, contain the following data: States net income was eatned evenly throughout vie year. Both compantes deciared and pard thelf divdends on December 35 20x4. Poinn uses the equity method in accounting for its investment in state. Required: a. Prepare the consolidation entres needed to complete a worksheot for 204. b. Prepare a consolidation viorksheet for 204