On January 1, 20X9, Zigma Company acquired 80 percent of Standard Company's common shares at underlying book value (Purchase Price $80K). Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are on the next page.

Required:

1. Prepare the eliminating entries needed as of December 31, 20X9, and complete the worksheet.

Hint:It may be helpful but not required to reconcile ?Income from Standard? and ?Investment in Standard? Accounts through the equity adjustments

Zigma Income Statement Sales Other Expenses Depreciation Income from Standard Consolidated Net Income NCI Net Income ControlIing Net Income Statement of Retained Earnings Beginning RE Net Income Less Dividends Declared Ending Retained Earnings Balance Sheet Current Assets Depreicable Assets Accumulated Depreciation Investment in Standard Total Assets Current Liabilities Long Term Liabilities Common Stock Retained Earnings NCI Share of Assets Total Liabilities and Equity Standard 200,000 (90,000) (30,000) 60,000 140,000 162,000 (70,000) (17,000) 140,000 75,000 175,000 140,000 (32,000) 283,000 35,000 75,000 (25,000) 85,000 253,000 300,000 (120,000) 120,000 553,000 145,000 170,000 (85,000) 50,000 120,000 100,000 283,000 553,000 30,000 50,000 65,000 85,000 ### 230,000 75,000 230,000 Eliminations Debit Credit Consolidated