(information for question) Today's fictional case takes place entirely on January 1, 2014. Congratulations! You have been hired by the accounting department of Palmer Company as the Accounting Manager overseeing Financial Reporting. Today is a very exciting day to join the team as Palmer is closing a deal that will result in the acquisition of a 90% controlling interest in Stevens Company through a cash payment of $1,000,000. You have been hired specifically because of this transaction, due to your expertise in Consolidation Accounting. - Stevens Company Date of Acquisition - January 1, 2014 [Subsidiary General Ledger = BLUE) Stevens Company Balance Sheet As of January 1, 2014 Book Value Cash 130,726 Accounts receivable 200,000 Inventories 160,000 Equipment 300,000 Accumulated depreciation (100,000) Land 190,000 Other 54,830 Total assets 935,556 Fair Value 130,726 200,000 210,000 390,000 (130,000) 290,000 54,830 40,000 150,000 Note payable Bonds payable Common stock Retained earnings Total liabilities and equity 40,000 205,556 500,000 190,000 935,556 Palmer Company Date of Acquisition - January 1, 2014 [Parent General Ledger = YELLOW] Cash Accounts receivable Note receivable Inventory Advance to s Equipment Accumulated depreciation Land Total Book Value 1,179,300 187,600 40,000 130,400 35,000 450,000 (250,000) 160,000 1,932,300 Accounts payable Common stock Other contributed capital Retained earnings Total 270,500 400,000 1,000,000 261,800 1,932,300 Trial Balance of Stevens on January 1, 2014 Fair Values of Stevens assets and liabilities on January 1, 2014 Trial Balance of Palmer on January 1, 2014 Additionally, your department has noted the following transactions of interest between Palmer and Stevens: 1. Stevens Company's accounts receivable include $20,000 due from Palmer Company, 2. Stevens Company's $40,000 note payable is payable to Palmer Company 3. Stevens Company has not yet recorded the $35,000 cash advance from Palmer Company. 3. Stevens Company has not yet recorded the $35.000 cash advance from Palmer Company (QUESTION) The eliminating entries in general journal form, t 1 Eliminating Entries 2 [Outside GL System = ORANGE] Note: Entries made here will be transferred to the worksheet, but will not be entered into the general ledger. 3 4 Entry 5 # Entry Date Account Name Debit Credit 6 7 10 12 13 14 15 16 17 19