On May 1, 2015, Peters Company purchased 80% of the common stock of Smith Company for $51,500. Additional data concerning these two companies for the years 2015 and 2016 are: 2015 2016 Peters Smith Peters Smith Common stock Other contributed capital Retained earnings, 1/1 Net income (loss) Cash dividends (11/30) $109,300 $24,700 $109,300 $24,700 9,600 36,200 73,300 11,000 125,500 52,800 66,100 43,800 35,200 (4,800 ) 13,900 9,600 36,200 2,000 5,000 Any difference between book value and the value implied by the purchase price relates to Smith Company's land Peters Company uses the cost method to record its investment. Prepare the workpaper entries that would be made on a consolidated statements workpaper for the years ended December 31, 2015 and 2016 for Peters Company and its subsidiary, assuming that Smith Company's income is earned evenly throughout the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2015 (To record dividend in (To eliminate investment in subsidiary and create noncontrolling interest) (To eliminate excess of the book value of equity acquired.) 2016 To establish reciprocity) (To eliminate investment in subsidiary and create noncontrolling interest)