only need part (b). part of the worksheet is filled out correctly, just need the rest of the worksheet filled out. mainly need the column of the consolidated.

Econ. 139 CHamon Illustration #3 Pepper Company, which is a values different than book value: mmofast ekor 325,000 on 12/31/17. On the acquisition date, the following net assets of Salt had fair acquisition date,ty,purchased 100% of the common stock of FMV Turnover 6 times per year 10 year life 4 year life 5.000- 100,000 Building and equipment 70,000 co 210,000 Bonds payable 40,000 50,000-175,000 10 years to maturity Eath company's fnancial stacecns for the year ended 1231 ly te cqisition are as follows: 207 Income Statement (8015 Pepper Co. Salt Co. Cost of sales Expenses Net Income 900,000) 500,000 260,000 (140,000) 250,000 202,000 Balance Sheet (as of 12/31115 Cash Accounts receivable 45,000 75,000 105,000 325,000 100,000 200,000 100,000 750 20.000 70,000 80,000 Investment in Salt Land Buildings and equipment, net 70,000 220,000 Total Assets 400,000 Payables and accruals Bonds payable Common stock Retained earnings (80,000) (20,000) (300,000) (50,000) (150,000) (100,000) Total Liab. and Equity 750,000)(400,000) Required Present the journal entries made by Pepper during 2018 to reflect the equity method of accounting a. Complete the "Illustration #3" worksheet to show the consolidation on 12/31/18 using the equity method to account for their iavestment in Salt. Pepper is b. stration #3 nsolidation Date 12/31/18 come Statement (2018) Consolidation Entries Debit Pepper Co. Salt Co. Credit Cons Sales Cost of sales Depreclation expense Interest expense Other expenses (950,000) 520,000 30,000 7,000 338,000 (52,500) (600,000) 300,000 22,000 (5 15,000 | 203,000 ulty income Net Income (107,500) (60,000) Statement of Retained Earnings (350.0000,000) 90,C00 107,500) Balances, beginning 1/1/18 Net Income Dividends declared Balances, 12/ 31/18 60,000) 35,000 (115,000) 80,000 (377,500) Balance Sheet (as of 12/31/18) 70,000 95,000 115,000 342,500 100,000 150,000 (110,000) 35,000 60,000 1 Cash Accounts receivable Inventory Investment in Salt Co Land Buildings and equipment iS.O0O LS.oOO) (325,CCC 20,000 5C00 70,000, 30, co 220,000 52 , (65,000) Accumulated depreciation Covenant-not-to-compete Goodwill Total Assets 762,500 440,000 Payables and accruals Bonds payable Common stock Retained earnings (65,000) (20,000) (300,000) (377,500) (75,000) 150,000) 100,000) 100, 00O 125, (115,000) Total Liab. and Equity (440,000) Econ. 139 CHamon Illustration #3 Pepper Company, which is a values different than book value: mmofast ekor 325,000 on 12/31/17. On the acquisition date, the following net assets of Salt had fair acquisition date,ty,purchased 100% of the common stock of FMV Turnover 6 times per year 10 year life 4 year life 5.000- 100,000 Building and equipment 70,000 co 210,000 Bonds payable 40,000 50,000-175,000 10 years to maturity Eath company's fnancial stacecns for the year ended 1231 ly te cqisition are as follows: 207 Income Statement (8015 Pepper Co. Salt Co. Cost of sales Expenses Net Income 900,000) 500,000 260,000 (140,000) 250,000 202,000 Balance Sheet (as of 12/31115 Cash Accounts receivable 45,000 75,000 105,000 325,000 100,000 200,000 100,000 750 20.000 70,000 80,000 Investment in Salt Land Buildings and equipment, net 70,000 220,000 Total Assets 400,000 Payables and accruals Bonds payable Common stock Retained earnings (80,000) (20,000) (300,000) (50,000) (150,000) (100,000) Total Liab. and Equity 750,000)(400,000) Required Present the journal entries made by Pepper during 2018 to reflect the equity method of accounting a. Complete the "Illustration #3" worksheet to show the consolidation on 12/31/18 using the equity method to account for their iavestment in Salt. Pepper is b. stration #3 nsolidation Date 12/31/18 come Statement (2018) Consolidation Entries Debit Pepper Co. Salt Co. Credit Cons Sales Cost of sales Depreclation expense Interest expense Other expenses (950,000) 520,000 30,000 7,000 338,000 (52,500) (600,000) 300,000 22,000 (5 15,000 | 203,000 ulty income Net Income (107,500) (60,000) Statement of Retained Earnings (350.0000,000) 90,C00 107,500) Balances, beginning 1/1/18 Net Income Dividends declared Balances, 12/ 31/18 60,000) 35,000 (115,000) 80,000 (377,500) Balance Sheet (as of 12/31/18) 70,000 95,000 115,000 342,500 100,000 150,000 (110,000) 35,000 60,000 1 Cash Accounts receivable Inventory Investment in Salt Co Land Buildings and equipment iS.O0O LS.oOO) (325,CCC 20,000 5C00 70,000, 30, co 220,000 52 , (65,000) Accumulated depreciation Covenant-not-to-compete Goodwill Total Assets 762,500 440,000 Payables and accruals Bonds payable Common stock Retained earnings (65,000) (20,000) (300,000) (377,500) (75,000) 150,000) 100,000) 100, 00O 125, (115,000) Total Liab. and Equity (440,000)