P4-28 Consolidated Balance Sheet LO 4-5 Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20x2. The balance sheets of the two companies on December 31, 20X3, showed the following amounts: Cash Accounts Receivable Land Buildings & Equipment Less: Accumulated Depreciation Investment in Sawmill Corporation Powder Company $ 30,000 100,000 60,000 500,000 (230,000) 252,000 $ 712,000 Sawmill Corporation $ 20,000 40,000 50,000 350,000 (75,000) $385,000 Accounts Payable Taxes Payable Notes Payable Common Stock Retained Earnings $ 80,000 40,000 100,000 200,000 292,000 $ 712,000 $ 10,000 70,000 85,000 100,000 120,000 $385,000 Sawmill reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Assume Sawmill's accumulated depreciation on the acquisition date was $25,000. Required: a. Prepare the appropriate consolidation entry or entries needed to prepare consolidated balance sheet as of December 31, 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Record the basic consolidation entry. Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Consolidation Worksheet Entries