On December 31, 2016, Paladium International purchased 100% of the outstanding common stock of Sennex Chemical inc.. Paladium paid $200,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list not recorded on their books that had a fair value of $10,000 and an expected remaining useful life of 5 years. At the time of purchase, Sennex had stockholders equity consisting of common stock of $20,000 and retained earnings of $80,000. Any remaining excess fair value was attributed to goodwill. The separate financial statements at December 31, 2017 appear in the first two columns of the consolidation workpapers shown below. Required: Complete the consolidation workpapers for Paladium and Sennex for the year 2017. Paladium Sennex Elimination Debits Entries Credits Consolidated Balance Sheet INCOME STATEMENT Sales $ (331,900) $ (48,000) Income of Sennex (13,000) Cost of Sales 148,000 25,000 Other Expenses 72,000 8,000 Net Income $ (124,900) $ (15,000) Retained Earnings 1/1 $ (846,000) $ (80,000) Add: Net Income (124,900) (15,000) Less: Dividends 9,000 4,000 Retained Earnings 12/31 $ (961,900) $ (91,000) BALANCE SHEET Cash $ 135,000 $ 64,000 Accounts Receivable-net 227,000 160,000 Inventories 316,000 86,000 Land 80,000 40,000 Equipment and Buildings-net 410,200 230,000 Investment in Sennex 209,000 Customer List Goodwill Total Assets $1,377,200 $ 580,000 LIAB. & EQUITY Accounts Payable $ (305,300) $ ( 469,000) Common Stock $ (110,000) $ (20,000) Retained Earnings-12/31 (961,900) (91,000) TOTAL LIAB. AND EQUITY $(1,377,200) $ (580,000)