On January 1, 2021, Pick Company acquired 100% of Safe Corporations common shares at underlying book value. Pick uses the equity method with consolidation in accounting for its ownership of Safe. On December 31, 2021, the trial balances of the two companies are as follows:

Pick Co.Safe Corp.ItemDebitCreditDebitCreditCurrent Assets $238,000 $95,000 Depreciable Assets300,000 170,000 Investment in Safe Co.100,000 Other Expenses90,000 70,000 Depreciation Expense30,000 17,000 Dividends Declared32,000 10,000 Accumulated Depreciation$120,000 $ 85,000 Current Liabilities50,000 30,000 Long-Term Debt120,000 50,000 Common Stock100,000 50,000 Retained Earnings175,000 35,000 Sales200,000 112,000 Income from Safe Co.25,000 $790,000 $790,000 $362,000 $362,000 Required:Prepare an Excel document with one tab for each of the following.1. Prepare the journal entries on Picks books for the acquisition of Safe on January 1, 2021, as well as any normal equity-method entry(ies) related to the investment in Safe during 2021.2. Prepare a three-part consolidation worksheet as of December 31, 2021 in good form.

On January 1, 2021, Pick Company acquired 100% of Safe Corporation's common shares at underlying book value. Pick uses the equity method with consolidation in accounting for its ownership of Safe. On December 31, 2021, the trial balances of the two companies are as follows: Safe Corp. Debit Credit $95,000 170,000 70,000 17,000 10,000 Item Current Assets Depreciable Assets Investment in Safe Co. Other Expenses Depreciation Expense Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Safe Co. Pick Co. Debit Credit $238,000 300,000 100,000 90,000 30,000 32,000 $120,000 50,000 120,000 100,000 175,000 200,000 25,000 $790,000 $790,000 $ 85,000 30,000 50,000 50,000 35,000 112,000 $362,000 $362,000 Required: Prepare an Excel document with one tab for each of the following. 1. Prepare the journal entries on Pick's books for the acquisition of Safe on January 1, 2021, as well as any normal equity-method entry(ies) related to the investment in Safe during 2021. 2. Prepare a three-part consolidation worksheet (like the solution to P2-23 from the course text) as of December 31, 2021 in good form