Mini-Case 2 (Computer Spreadsheet Assignmert #2): ACCT 5175 Spring 2018 On January 1, 2018, Puget Sound Corporation bought 100% of the stock of Spokane Corporation. Puget Sound purchased it by issuing 500,000 additional shares of their $5 par value stock, which at the time was worth $20 per share. Puget Sound also paid for it in part by paying $300,000. Other pertinent information: Stockholder's equity of Spokane at acquisition was $7,200,000 Fair value of previously unrecorded identifiable intangibles (5-year life): $2,000,000 Goodwill and identifiable intangibles are not impaired in 2018 Spokane's net income in 2018: $3,000,000. Spokane's dividends paid in 2018: $1,000,000. On December 31, 2018, Puget Sound owed Spokane S16,000, and Spokane owed Puget Sound $22,000. Puget Sound's CEO fired Spokane's CEO on June 1, 2018. Spokane introduced a new product on August 31, 2018. Puget Sound uses the complete equity method to record its investment in Spokane. By December 31, 2018, the fair market value of identifiable intangibles on Spokane's books was worth $3,000,000 The following is the trial balance data for Puget Sound and Spokane on December 31, 2018 Spokane S 290,000,000 410,000,000 250,000,000 300,000,000 1,100,000,000 100,000 11,900,000 750,000,000 90,000,000 10,000,000 20,200,000 100,000,000 400,000,000 899,600,000 800,000,000 70,000,000 250,000,000 910,000,000 2,600.000 S 10,000,000 30,000,000 5,000,000 7,000,000 33,000,000 0 Cash Accounts Receivable Inventory Land Buildings & Equipment-Net Identifiable Intangible Assets Investment in Spokane Cost of Goods Sold Depreciation Expense Amortization Expense Other Expenses Dividends Declared Accounts Payable Long-Term Liabilities Common Stock Additional Paid in Capital Retained Earnings, Jan. 1, 2018 Sales Equity in Income from Spokane 22,000,000 40,000,000 1,000,000 1,000,000 10,000,000 65,800,000 7,000,000 150,000 50,000 66,000,000 SO SO Required: 1. Prepare the journal entries for Puget Sound regarding its investment in Spokane during 2018 2. Prepare the consolidation eliminating entries made at December 31, 2018 3. Prepare a workpaper for the consolidated workpapers [Balance Sheet, Income Statement, & Retained Earnings] of Puget Sound and Spokane as of December 31, 2018. Show all necessary elimination entries in their proper columns. Use a coding system for each elimination entry. On the worksheet itself, every elimination entry should be identified separately with its own number or a letter