On January 1, 2013, Monica Company acquired 70 percent of Young Companys outstanding common stock for $784,000. The fair value of the noncontrolling interest at the acquisition date was $336,000. Young reported stockholders equity accounts on that date as follows

Common stock$10 par value	$	100,000
Additional paid-in capital		80,000
Retained earnings		640,000

In establishing the acquisition value, Monica appraised Youngs assets and ascertained that the accounting records undervalued a building (with a five-year life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

Year	Transfer Price		Inventory Remaining at Year-End (at transfer price)
2013	$	40,000		$	33,000
2014		60,000			35,000
2015		70,000			41,000

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2014, for $59,000. The equipment had originally cost Monica $96,000. Young plans to depreciate these assets over a 5-year period.

In 2015, Young earns a net income of $210,000 and distributes $70,000 in cash dividends. These figures increase the subsidiarys Retained Earnings to a $970,000 balance at the end of 2015.

Monica employs the equity method of accounting. Hence, it reports $133,740 investment income for 2015 with an Investment account balance of $868,390. Under these circumstances, prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

TRANSACTION	ENTRIES	DEBIT	CREDIT
ENTRY *G
	Retained Earnings, 1/1/15 (Young)	$10,500
	COGS		$10,500
ENTRY *TA
	Investment in Young	$47,200
	Equipment	$37,000
	Accum. Depreciation		$84,200
ENTRY *C
	No journal entry required
ENTRY S
	Common Stock Young
	Additional paid in capital - Young
	Retained Earnings, 1/1/15 (Young)
	Investment in Young
	Non-controlling interest in Young
ENTRY A
	Investment income
	Investment in Young
ENTR D
	Investment in Young
	Dividends declared
ENTRY E
	Depreciation expense	$8,000
	Amortization expense
	Franchise agreement
	Buildings		$8,000
ENTRY TI
	Sales
	Cost of goods sold
ENTRY G
	Cost of goods sold
	Inventory
ENTRY ED
	Accumulated depreciation
	Depreciation expense