On January 1, 2021, Pikes Corporation loaned Venti Company $320,000 and agreed to guarantee all of Ventis long-term debt in exchange for (1) decision-making authority over all of Ventis activities and (2) an annual management fee of 25 percent of Ventis annual revenues. As a result of the agreement, Pikes becomes the primary beneficiary of Venti (now a variable interest entity). Pikes loan to Venti stipulated a 6 percent (market) rate of interest to be paid annually with principal due in 10 years.

On January 1, 2021, Pikes estimated that the fair value of Ventis equity shares equaled $95,000 while Ventis book value was $75,000. Any excess fair over book value at that date was attributed to Ventis trademark with an indefinite life.

Because Pikes owns no equity in Venti, all of the acquisition-date excess fair over book value is allocated to the noncontrolling interest.

Venti paid Pikes 25 percent of its 2021 revenues at the end of the year and recorded the payment in other operating expenses. Venti also paid the interest to Pikes for the loan. On December 31, 2021, Pikes and Venti submitted the following statements for consolidation. (Parentheses indicate credit balances.)

	Pikes				Venti
Revenues	$	(812,000	)		$	(236,000	)
Management fee		(59,000	)
Cost of good sold		641,000				91,000
Other operating expenses		96,000				66,000
Interest income		(19,200	)			0
Interest expense		0				41,000
Net income		(153,200	)			(38,000	)
Retained earnings, 1/1		(1,384,000	)			(60,000	)
Net income		(153,200	)			(38,000	)
Dividends declared		79,000				0
Retained earnings, 12/31		(1,458,200	)			(98,000	)
Current assets		460,000				93,000
Loan receivable from Venti		320,000
Equipment (net)		765,000				547,000
Trademark		0				145,000
Total assets		1,545,000				785,000
Current liabilities		(36,800	)			(112,000	)
Loan payable to Pikes						(320,000	)
Other long-term debt		0				(240,000	)
Common stock		(50,000	)			(15,000	)
Retained earnings, 12/31		(1,458,200	)			(98,000	)
Total liabilities and equity	$	(1,545,000	)		$	(785,000	)

QUESTION: Prepare the December 31, 2021, consolidation worksheet below for Pikes and its variable interest entity Venti.

NCI $ Pikes and Venti Companies Consolidation Worksheet Year Ended December 31, 2021 Consolidation Entries Pikes Venti Debit Credit 812,000 $ 236,000 59,000 0 59,000 641,000 91,000 96,000 66,000 19,200 0 0 41,000 153,200 $ 38,000 Consolidated Balances 1,048,000 0 732,000 103,000 0 21,800 $ Revenues Management fee Cost of good sold Other operating expenses Interest income Interest expense Net income Consolidated net income to noncontrolling interest to Pikes Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 $ 191,200 191,200 $ 60,000 38,000 1,384,000 $ 153,200 79,000 1,458,200 $ 0 $ 98,000 553,000 93,000 0 $ 0 1,312,000 460,000 $ 320,000 765,000 0 1,545,000 $ 36,800 0 $ $ Current assets Loan receivable from Venti Equipment (net) Trademark Total assets Current liabilities Loan payable to Pikes Other long-term debt Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equity 547,000 145,000 785,000 112,000 320,000 240,000 15,000 1,865,000 148,800 0 240,000 0 50,000 0 1,458,200 1,545,000 $ 0 98,000 785,000 $ 59,000 $ 388,800 NCI $ Pikes and Venti Companies Consolidation Worksheet Year Ended December 31, 2021 Consolidation Entries Pikes Venti Debit Credit 812,000 $ 236,000 59,000 0 59,000 641,000 91,000 96,000 66,000 19,200 0 0 41,000 153,200 $ 38,000 Consolidated Balances 1,048,000 0 732,000 103,000 0 21,800 $ Revenues Management fee Cost of good sold Other operating expenses Interest income Interest expense Net income Consolidated net income to noncontrolling interest to Pikes Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 $ 191,200 191,200 $ 60,000 38,000 1,384,000 $ 153,200 79,000 1,458,200 $ 0 $ 98,000 553,000 93,000 0 $ 0 1,312,000 460,000 $ 320,000 765,000 0 1,545,000 $ 36,800 0 $ $ Current assets Loan receivable from Venti Equipment (net) Trademark Total assets Current liabilities Loan payable to Pikes Other long-term debt Common stock Noncontrolling interest Retained earnings, 12/31 Total liabilities and equity 547,000 145,000 785,000 112,000 320,000 240,000 15,000 1,865,000 148,800 0 240,000 0 50,000 0 1,458,200 1,545,000 $ 0 98,000 785,000 $ 59,000 $ 388,800