On January 1, 2014, the Small Company and Smaller Company had the following balance sheets

	Small	Smaller
Cash	1,000,000	200,000
Accounts Receivable	2,000,000	200,000
Equipment	5,000,000	500,000
Accumulated Depreciation Equipment	1,000,000	200,000
Total Assets	7,000,000	700,000
Accounts Payable	1,000,000	300,000
Common Stock	5,000,000	300,000
Retained Earnings	1,000,000	100,000

On January 2, 2014, Small purchased 80% of the stock of Smaller for $500,000. At this time Smallers equipment had a fair market value of $350,000 with all other assets and liabilities having a book value equal to market value.

REQUIRED:

1) MAKE THE JOURNAL ENTRY SMALL MAKES WHEN IT BUYS SMALLER

2) MAKE THE JOURNAL ENTRY SMALLER MAKES WHEN ITS OWNERS SELL THEIR STOCK TO SMALL

3) MAKE THE WORKSHEET ENTRIES NEEDED ON 1/2/14

4) PREPARE A CONSOLIDATED BALANCE SHEET ON 1/2/14DONT FORGET, SMALL SPENT MONEY BUYING SMALLER.