On January 2, 2014, Phillips Company purchased 80% of Sanchez Company and 90% of Thomas Company for $221,700 and $167,300, respectively. Immediately before the acquisitions, the balance sheets of the three companies were as follows:

	Phillips	Sanchez	Thomas
Cash	400000	43700	20000
Accounts Receivable	28000	24000	20000
Note Receivable	0	10000	0
Interest Receivable	0	300	0
Inventory	120000	96000	43000
Equipment	60000	40000	30000
Land	180000	80000	70000
Total	788000	294000	183000
Accounts Payable	28000	20000	18000
Note Payable	0	0	10000
Common Stock	300000	120000	75000
Other Contributed capital	300000	90000	40000
Retained earnings	160000	64000	40000
Total	788000	294000	183000

  The note receivable and interest receivable of Sanchez relate to a loan made to Thomas Company on October 1, 2013. Thomas failed to record the accrued interest expense on the note. Required: Prepare a consolidated balance sheet work paper as of January 2, 2014. Any difference between book value and the value implied by the purchase price relates to subsidiary land.