On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company's common stock as well as 60 percent of its preferred shares. Mona paid $85,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at $54,000 fair value. Mona paid $598,000 for the common stock. At the acquisition date, the noncontrolling interest in the comma stock had a fair value of $149,000. The excess fair value over Lisa's book value was atnbuted to franchise contracts of $81,000. This intangible esset is being amortized over a 30-year period. Lise parys all prefferred stock dividends (a total of $28,000 per year) on an annual basis. During 20 Lisa's book value incressed by $77,000 On January 2, 2017, Mona acquired one-haif of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's boncs had a face value of $100,000 and paid cash interest of 8 percent per year. These bonds had been issued to the public to yield 10 percent Interest paid each December 31. On January 2, 2017, these bonds had a total $93,060 camying amount. Mona paid $53,485, indicating an efflective interes ate of 6 percent On January 3, 2017, Mons sold Lisa fxed assets that had originally cost $120,000 but had accumulated depreciation of $70,000 when transferred The transfer was made et a price of $160,000. These assets were estimated to have a remaining uselul life of 10 years The indvidual financial stabe ments for these two companies for the yeer ending December 31, 2018, are as follows: Mona, Inc Lsa Company Sales and Expenses Oividend income-Lisa common stock Dhidand Incoma- Lisa preferred sock (5400001 $0240000 240,000 (24,000) Rataned earning, 10 Net income (above) Dividends deciares-common stock DMdands deciarsd-prelerred stock (340 800) (100,000) 5 (720,00) (540,000) (100,000) (340,800) 112,500 Retaind oaming. 12/3111B 048,000)S (582,000) Inveatmank in Liss-preferred stock 85,000 51,833 1,120,000 Totmi assets 1,681.252 (415.2) Accourts payable Bonds pay Diacount on bonds paryab (101 472) 100,000 3472 220,000) (120,000 Preferred stock Ratained amings, 1231/18 Total labilties and equtes (1,683 252) (1.120,000 a. What consolidation workshoot aduatmants would have been required as of Jenuary 1, 2017, to eilminate the wubaidery's common and preferred stocks? b. What consolidation workshest adjustments wouild have been requlred as of December 31, 2017, to account for Mona's purchase of Lisa's bonds? e. What consolidation worksheet adjuatments would have been required as of December 31, 2017, to acoount for the intra-ertity sale of foxed hat consoldated francil statements are being perepared for the year ending December 31,2018. Calculato the consolidated balance for sach of the tollowing accounts Fxed Assets Accumulated Depreciation Expenses Req A to C Req D a. What consolidation worksheet adjustments would have been required as of January 1, 2017, to ellminate the subsidiary's and preferred stocks? b. what consolidation worksheet adjustments would have been required as of December 31, 2017, to account for Mona's pur Lisa's bonds? c. What consolidation worksheet adjustments would have been required as of December 31, 2017, to account for the intra-en fxed assets? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sh view transaction list Consolidation Worksheet Entries 2 Prepare Entry S and A combined to elminate the subsidiary stockholders equity, record the excess acquisition-date fair values, and to record the outside ownership of the subsidiary's preferred and common stock at the acquisition-date falr values. Note: Enter debits before areaits Accounts Deblt Credit Jan 01, 2017 vlew consolldation entries Clear entry rev 12.13 2018 OC cS-150522 Refarences Consolidating EntriesLeaming Objective: 06-03 Demonstrate the consolidation procedures to elminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one company acquires an affliate's debt instrument from an outside party Req A to C Req D Assume that consolidated financial statements are being prepared for the year endin consolidated balance for each of the following accounts: (Round your intermediate calculations to the g December 31, 2018. Calculate the Franchises Fixed assets Accumulated depreciation Expenses Req A to C Req D rev: 12_13_ 2018_Qc_cS-150522 References Consolidating Entries Learning Objective: 06-03 Demonstrate the consolidation procedures to eliminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one On January 1, 2017, Mona, Inc., acquired 80 percent of Lisa Company's common stock as well as 60 percent of its preferred shares. Mona paid $85,000 in cash for the preferred stock, with a call value of 110 percent of the $50 per share par value. The remaining 40 percent of the preferred shares traded at $54,000 fair value. Mona paid $598,000 for the common stock. At the acquisition date, the noncontrolling interest in the comma stock had a fair value of $149,000. The excess fair value over Lisa's book value was atnbuted to franchise contracts of $81,000. This intangible esset is being amortized over a 30-year period. Lise parys all prefferred stock dividends (a total of $28,000 per year) on an annual basis. During 20 Lisa's book value incressed by $77,000 On January 2, 2017, Mona acquired one-haif of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's boncs had a face value of $100,000 and paid cash interest of 8 percent per year. These bonds had been issued to the public to yield 10 percent Interest paid each December 31. On January 2, 2017, these bonds had a total $93,060 camying amount. Mona paid $53,485, indicating an efflective interes ate of 6 percent On January 3, 2017, Mons sold Lisa fxed assets that had originally cost $120,000 but had accumulated depreciation of $70,000 when transferred The transfer was made et a price of $160,000. These assets were estimated to have a remaining uselul life of 10 years The indvidual financial stabe ments for these two companies for the yeer ending December 31, 2018, are as follows: Mona, Inc Lsa Company Sales and Expenses Oividend income-Lisa common stock Dhidand Incoma- Lisa preferred sock (5400001 $0240000 240,000 (24,000) Rataned earning, 10 Net income (above) Dividends deciares-common stock DMdands deciarsd-prelerred stock (340 800) (100,000) 5 (720,00) (540,000) (100,000) (340,800) 112,500 Retaind oaming. 12/3111B 048,000)S (582,000) Inveatmank in Liss-preferred stock 85,000 51,833 1,120,000 Totmi assets 1,681.252 (415.2) Accourts payable Bonds pay Diacount on bonds paryab (101 472) 100,000 3472 220,000) (120,000 Preferred stock Ratained amings, 1231/18 Total labilties and equtes (1,683 252) (1.120,000 a. What consolidation workshoot aduatmants would have been required as of Jenuary 1, 2017, to eilminate the wubaidery's common and preferred stocks? b. What consolidation workshest adjustments wouild have been requlred as of December 31, 2017, to account for Mona's purchase of Lisa's bonds? e. What consolidation worksheet adjuatments would have been required as of December 31, 2017, to acoount for the intra-ertity sale of foxed hat consoldated francil statements are being perepared for the year ending December 31,2018. Calculato the consolidated balance for sach of the tollowing accounts Fxed Assets Accumulated Depreciation Expenses Req A to C Req D a. What consolidation worksheet adjustments would have been required as of January 1, 2017, to ellminate the subsidiary's and preferred stocks? b. what consolidation worksheet adjustments would have been required as of December 31, 2017, to account for Mona's pur Lisa's bonds? c. What consolidation worksheet adjustments would have been required as of December 31, 2017, to account for the intra-en fxed assets? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sh view transaction list Consolidation Worksheet Entries 2 Prepare Entry S and A combined to elminate the subsidiary stockholders equity, record the excess acquisition-date fair values, and to record the outside ownership of the subsidiary's preferred and common stock at the acquisition-date falr values. Note: Enter debits before areaits Accounts Deblt Credit Jan 01, 2017 vlew consolldation entries Clear entry rev 12.13 2018 OC cS-150522 Refarences Consolidating EntriesLeaming Objective: 06-03 Demonstrate the consolidation procedures to elminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one company acquires an affliate's debt instrument from an outside party Req A to C Req D Assume that consolidated financial statements are being prepared for the year endin consolidated balance for each of the following accounts: (Round your intermediate calculations to the g December 31, 2018. Calculate the Franchises Fixed assets Accumulated depreciation Expenses Req A to C Req D rev: 12_13_ 2018_Qc_cS-150522 References Consolidating Entries Learning Objective: 06-03 Demonstrate the consolidation procedures to eliminate all intra-entity debt accounts and recognize any associated gain or loss created whenever one