Illustration #3a Pepsi Co., which is a calendar-year-reporting company, purchased 90% of the common stock of Sprite Co. for $270,000 on 1/1/20. On the acquisition date, the net assets of Sprite approximated their fair values of $300,000. Each company's financial statements for the year ended 12/31/20 are presented on the Illustration #3a Worksheet which is included as a link with this assignment. Required: When submitting this assignment, both requirements below should be included on the excel worksheet provided. a. Present the journal entries made by Pepsi during 2020 to reflect the acquisition of Sprite and the equity method of accounting. b. Complete the "Illustration #3a Worksheet" to show the consolidation of Pepsi and Sprite on 12/31/20 Income Statement (2020) Sales Illustration #3 Consolidation Date 12/31/20 Pepsi Co. Sprite Co. (750.000) (300.000) Cost of sales 230,000 175,000 Depreciation expense 45,000 10,000 Other expenses 150,000 40,000 Income from Sprite (67.500) Consolidation Entries Debit Credit Consolidated Illustration #3a Consolidation Date 12/31/20 Consolidation Entries Income Statement (2020) Pepsi Co. Sales (750,000) Sprite Co. (300,000) Debit Credit Consolidated Cost of sales 230,000 175,000 Depreciation expense 45,000 10,000 Other expenses 150,000 40,000 Income from Sprite (67,500) NCI in net income Net Income (392,500) (75,000) Statement of Retained Earnings Balances, beginning 1/1/20 (232,500) (100,000) Net income (392,500) (75,000) Dividends declared 100,000 20,000 Balances, 12/31/20 (525,000) (155,000) Balance Sheet (as of 12/31/20) Cash 215,500 75,000 Accounts receivable 145,000 90,000 Inventory 180,000 80,000 Investment in Sprite 319,500 Land 175,000 130,000 Buildings and equipment 715,000 145,000 Accumulated depreciation (450,000) (20,000) Total Assets 1,300,000 500,000 Payables and accruals (100,000) (70,000) Bonds payable (175,000) (75,000) Common stock (500,000) (200,000) Retained earnings (525,000) (155,000) NCI in net assets Total Liab. and Equity (1,300,000) (500,000)