On January $1,2022,$ Monica Company acquired $70$ percent of Young Company's outstanding common stock for $$770,000.$ The falr

value of the noncontrolling interest at the acquisition date was $$330,000.$

Young reported stockholders' equity accounts on that date as follows:

Common stock$-$$$10$ par value $$200,000$

Additional paid$-in$ capital $60,000$

Retained earnings $620,000$

In establishing the acquisition value, Monica appraised Young's assets and ascertalned that the accounting records undervalued a

bullding $($with a five$-$year remalning life$)$ by $$80,000.$ Any remalning excess acquisition$-$date falr value was allocated to a franchise

agreement to be amortized over $10$ years.

During the subsequent years, Young sold Monica Inventory at a $40$ percent gross profit rate. Monica consistently resold this

merchandise in the year of acquisition or in the perlod Immediately following. Transfers for the three years after this business

combination was created amounted to the following:

In addition, Monica sold Young several pleces of fully depreclated equipment on January $1,2023,$ for $$57,000.$ The equipment had

originally cost Monica $$92,000.$ Young plans to depreclate these assets over a $6-$year perlod.

In $2024,$ Young earns a net Income of $$190,000$ and declares and pays $$60,000$ in cash dividends. These figures increase the

subsidiary's Retalned Earnings to a $$950,000$ balance at the end of $2024.$ No changes in Young's common stock accounts have

occurred since Monica's acquisition.

Required:

Monica employs the equity method of accounting. Hence, It reports $$119,820$ investment income for $2024$ with an Investment account

balance of $$889,080.$ Prepare the worksheet entrles required for the consolidation of Monica Company and Young Company.

Note: If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" In the first account field.

Consolidation

Worksheet Entries

Note: Enter debits before credits.