P Corporation acquired 70 percent ownership of S Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of S. On January 1, 20X8, Portfolio sold 1,000 shares of S Company for $20,000 to A Corporation and recorded a $5,000 gain. Trial balances for the companies on December 31, 20X8, contain the following data:

S Company's net income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20X8. P uses the fully adjusted equity method in accounting for its investment in S.

Required:

1. Prepare the elimination entries needed to complete a full consolidation worksheet for 20X8.
2. Prepare a consolidation worksheet for 20X8.

Credit Credit P Corp. Debit 70,000 60,000 80,000 S Company Debit 20,000 40,000 60,000 400,000 200,000 114,000 180,000 90,000 40,000 20,000 17,000 25,000 30,000 20,000 Cash Accounts Receivable Inventory Buildings and Equipment Investment in S Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($5 par) Additional Paid-In Capital Retained Earnings Sales Gain on Sale of S Company Stock Income from S Company $ 80,000 $ 60,000 40,000 100,000 30,000 40,000 150,000 50,000 75,000 10,000 200,000 300,000 90,000 200,000 5,000 36,000 $ 986,000 $ 986,000 $ 480,000 $ 480,000