LU 3. Prepare the 200 ings statement, and balance sheet Liabilities and Equity equis have life uses Assets $ 50,000 75,000 350,000 $140,000 100.000 120.00 125806 Liabilities Common stock ($10 por) Paid in capital in excess of par Retained earnings (deficit). Current assets Land Buildings Accumulated depreciation Buildings Total assets tion Th. yea (140,000) $ 335,000 Total liabilities and equity $335.000 understated by stock for a total price of $270,000. Also on this date, the buildings were simple equity method to record the investment and its related income. on December 31, 20X2: Prescott Current Assets Land.. Buildings Accumulated Depreciation-- Buildings Investment in Scully Company Liabilities Common Stock ($10 par) Paidin Capital in Excess of Por 180,000 150,000 590,000 (265,000) 294,000 (175,000) (200,000) Scully 115,000 75,000 350,000 (182,000 (133,000 (100,000 (120,000 Problem 3-6 ( 12) Equity method, 80% interest, worksheet, statements. So Company prepared the following balance sheer on January 1, 20X1: On this dare. Prescott Company purchased 8.000 shares of Scully Company's outstanding $40,000 and had a 10-year remaining life. Any remaining discrepancy between the price paid and book value was attributed to goodwill. Since the purchase, Prescott Company has used the Prescott Company and Scully Company have prepared the following separate trial balances Chapter 3 CONSOLIDATED STATEMENTS: SUBSEQUENT TO ACQUISITION Retained Earnings, Jan. 1, 20X2 Sales ..... Cost of Goods Sold Expenses Subsidiary Income Dividends Declared. Total..... (503,000) (360,000) 179,000 120,000 120,000) 10,000 0 15,000 (120,000) 50,000 45,000 5,000 1. Prepare a determination and distribution of excess schedule for the investment. 2. Prepare the 20X2 consolidated worksheet. Include columns for the eliminations and adjust- ments, the consolidated income statement, the NCI, the controlling retained earnings, and the consolidated balance sheet. Prepare supporting income distribution schedules. 3. Prepare the 20X2 consolidated statements including the income statement, retained earn- ings statement, and the balance sheet