Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,...

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Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $802,720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $1,003,400 although Sierra's book value was only $690,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Book Value Fair Value $ 65,000 $290,000 287,000 263,000 122,000 216,000 (176,000) (157,600) For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies. Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net incone Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities 274,000 $2,100 (177,120) $ (472,000) $ Padre Sierra $(1,394,980) S (684,900) 774,000 432,000 11,600 6,100 9,200 e (226,000) (530,000) (472,000) 260,000 (226,000) 65,000 $ (691,000) 856,160 $ 764,700 65,000 $(1,275,000) $ $(1,457,000) 927,840 360,000 909,000 $ 3,053,000 275,400 115,900 $ 1,221,000 (275,000) $ (541,000) I (300,000) (194,000) (176,000) (100,000) (60,000) (691,000) (450,000) (1,487,000) $(3,053,000) $ (1,221,000) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Revenues Cost of goods sold Accounts Padre Sier Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals $(1,394,080) $ (684,900) 774,000 432.000 274,000 11,600 0 6,100 +2.1 9,200 Depreciation expense Amortization expense Interest expense Equity in income of Siema Separate company net income Consolidated net income NI to noncontrolling interest NI to Padre Company Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Siema Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $2,100 (177,120) $ (472.000) $ (226,000) $(1,275,000) $ (530.000) (472,000) (226,000) 260.000 65.000 $(1,487,000) $ (601,000) $ 856,160 $ 764,700 927,840 360,000 909,000 0 65,000 275,400 115,000 $ 3.053.000 $ 1,221,000 $ (275,000) $ (194,000) (541,000) (176,000) (300.000) (100,000) (450,000) (1,487,000) (60,000) (691,000) $(3,053,000) $(1,221,000) Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $802,720 cash. At the acquisition date, Sierra's total fair value, including the noncontrolling interest, was assessed at $1,003,400 although Sierra's book value was only $690,000. Also, several individual items on Sierra's financial records had fair values that differed from their book values as follows: Land Buildings and equipment (10-year remaining life) Copyright (20-year remaining life) Notes payable (due in 8 years) Book Value Fair Value $ 65,000 $290,000 287,000 263,000 122,000 216,000 (176,000) (157,600) For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies. Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in income of Sierra Net income Retained earnings, 1/1/21 Net incone Dividends declared Retained earnings, 12/31/21 Current assets Investment in Sierra Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities 274,000 $2,100 (177,120) $ (472,000) $ Padre Sierra $(1,394,980) S (684,900) 774,000 432,000 11,600 6,100 9,200 e (226,000) (530,000) (472,000) 260,000 (226,000) 65,000 $ (691,000) 856,160 $ 764,700 65,000 $(1,275,000) $ $(1,457,000) 927,840 360,000 909,000 $ 3,053,000 275,400 115,900 $ 1,221,000 (275,000) $ (541,000) I (300,000) (194,000) (176,000) (100,000) (60,000) (691,000) (450,000) (1,487,000) $(3,053,000) $ (1,221,000) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) PADRE INC., AND SIERRA CORPORATION Consolidated Worksheet For Year Ending December 31, 2021 Revenues Cost of goods sold Accounts Padre Sier Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals $(1,394,080) $ (684,900) 774,000 432.000 274,000 11,600 0 6,100 +2.1 9,200 Depreciation expense Amortization expense Interest expense Equity in income of Siema Separate company net income Consolidated net income NI to noncontrolling interest NI to Padre Company Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Siema Land Buildings and equipment (net) Copyright Total assets Accounts payable Notes payable NCI in Sierra 1/1 NCI in Sierra 12/31 Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $2,100 (177,120) $ (472.000) $ (226,000) $(1,275,000) $ (530.000) (472,000) (226,000) 260.000 65.000 $(1,487,000) $ (601,000) $ 856,160 $ 764,700 927,840 360,000 909,000 0 65,000 275,400 115,000 $ 3.053.000 $ 1,221,000 $ (275,000) $ (194,000) (541,000) (176,000) (300.000) (100,000) (450,000) (1,487,000) (60,000) (691,000) $(3,053,000) $(1,221,000)