On January 1, 2018, Pony Company purchased 85% of the outstanding common stock of Star Company for $260,000. At that time, Star's stockhlders' equity consisted of common stock, $220,000; other contributed capital, $13,000; and retained earnings, $20,000. Prepare a consolidated statements workpaper on December 31, 2018. Prepare the income statement, retained earnings statement, balance sheet based on the below trial balance, pass the relevant entries, bring their effect in the adjustments (eliminations) and then prepare the consolidated balances. USD ($) Pony Star Cash 42,000 79,000 Accounts receivable 52,000 80,000 Inventory 30,000 18,000 Investment in Star 260.000 0 Plant & equipment 95,000 80,000 Land 39,000 34,000 Dividends declared 20,000 20,000 Cost of goods sold 130,000 Operating exepense 20.000 Total debits 688,000 365,000 40,000 14.000 Accounts payable Other liabilities Common stock Other contributed capital Retained Earnings Sales Dividend Income Total credits 19.000 10,000 280,000 60,000 40,000 260,000 19,000 688,000 12,000 20,000 220,000 13,000 20,000 80,000 0 365.000