Need answers and explanation please.
Problem 6-44 (LO 5-3) Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $510,000 in cash. Of this amount, $45,000 was attributed to equipment with a 10-year remaining life and $55,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2018, Pavin reports $450,000 in bonds outstanding with a carrying amount of $416,000. Stabler purchases half of these bonds on the open market for $216,500. During 2018, Pavin begins to sell merchandise to Stapler. During that year, inventory costing $105,000 was transferred at a price of $140,000. All but $25,000 [at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $48,000 for inventory shipped from Pavin during December. The following nancial gures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. M h G ezto.mheducation.com STRAYER Blackboard Strayer Stocks v Classroom Home | iCampus Connect https://www.townofcary.org/home/showdocument?id=. Govt HW8 Practice Chapter 4 & 6 Quiz i Saved Help Save & Exit Submit palu uunny ure LUITGIRL year. Pavin Stabler Revenues $ (785 , 000) $ (535, 000) Cost of goods sold 470, 000 255, 000 Expenses 140 , 000 173, 500 Interest expense-bonds 51, 000 Interest income-bond investment (20, 750) Loss on extinguishment of bonds 01:38:57 Equity in Stabler's income (127, 250) Net income $ (251, 250) $ ( 127, 250) Retained earnings, 1/1/18 $ (360, 000) $ (391, 000) Net income (251, 250) (127, 250) eBook Dividends paid 170, 000 92, 000 Retained earnings, 12/31/18 $ (441, 250) $ ( 426, 250) References Cash and receivables 232,000 $ 50, 000 Inventory 190 , 000 102 , 000 Investment in Stabler 661, 250 Investment in Pavin bonds 221, 250 Land, buildings, and equipment (net) 260, 000 556, 000 Trademarks 0 Total assets $ 1,343, 250 $ 929, 250 Accounts payable $ (143 , 000) $ (253, 000) Bonds payable (450, 000) (115, 000) Discount on bonds 15 , 000 Common stock (324, 000) (135 , 000) Retained earnings (above) (441, 250) (426, 250) Total liabilities and stockholders' equity $ (1, 343, 250) $ (929, 250) Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries Mc Graw EducationPAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Accounts Pavin Stabler Debit Credit Totals Revenues $ (785,000) (535,000) Cost of goods sold 470,000 255,000 Expenses 140,000 173,500 Interest expense-bonds 51,000 Interest income-bond investment (20,750 Loss on extinguishment of bonds Equity in income of Stabler 127,250 0 Net income S (251,250) $ (127,250) $ Retained earnings, 1/1/18 360,000 Retained earnings, 1/1/18 301,000 Net income (251,250 (127,250) 0 Dividends paid 170,000 92,000 Retained earnings, 12/31/18 S (441,250) $ (426,250 $ 0 Cash and receivables S 232,000 60,000 Inventory 190,000 102,000 Investment in Stabler 661.250 Investment in Pavin 221,250 Land, buildings, and equipment (net) 260,000 556,000 Trademarks 0 Total assets $ 1,343,250 $ 929.250 $ Accounts payable 143,000 253,000 Bonds payable (450,000 (115,000 Discount on bonds 15,000 0 Common stock (324,000] (135,000 Retained earnings (441,250 (426,250 Total liabilities and stockholders' equity | $ (1,343,250) $ (929,250) $ 0 $ 0 $
