On January 1, 2022, Monica Company acquired 70 percent of Young Companys outstanding common stock for $756,000. The fair value of the noncontrolling interest at the acquisition date was $324,000.

Young reported stockholders equity accounts on that date as follows:

Common stock$10 par value	$ 300,000
Additional paid-in capital	40,000
Retained earnings	600,000

In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $60,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Young sold Monica inventory at a 20 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

Year	Transfer Price	Inventory Remaining at Year-End (at transfer price)
2022	$ 70,000	$ 29,000
2023	90,000	31,000
2024	100,000	37,000

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2023, for $55,000. The equipment had originally cost Monica $88,000. Young plans to depreciate these assets over a 5-year period.

In 2024, Young earns a net income of $170,000 and declares and pays $50,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $930,000 balance at the end of 2024. No changes in Youngs common stock accounts have occurred since Monicas acquisition.

Required:

Monica employs the equity method of accounting. Hence, it reports $115,160 investment income for 2024 with an Investment account balance of $906,820. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company.

Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

Example of entry:

All entries need:

Consolidation Worksheet Entries Note: Enter debits before credits. Prepare Entry G Prepare Entry *TA Prepare Entry C 4 Prepare Entry S 5 Prepare Entry A 6 Prepare Entry I 7 Prepare Entry D 8 Prepare Entry E 8 Prepare Entry E 9 Prepare Entry TI 10 Prepare Entry G 11 Prepare Entry ED