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.

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