Pan Corporation acquired an 85% interest in Sly Corporation on August 1, 2017 for $522,750, equal to the 85% of the underlying equity of Sly Corporation on that date. Sly's dividends were declared in equal amounts on June 15 and December 15. The June dividend has been issued, the December dividend has been declared but not issued as of December 31, 2017. Pan applies the equity method, such that its net income is equal to the controlling share of the consolidated net income. Financial statements for Pan and Sly are attached: (in thousands) Required: Prepare the Consolidated Journal Entries for 12/31/2017 in excel Pan Sly Combined Income and Retained Earnings Statement For the Year Ended December 31, 2017 Sales Income from Sly Cost of Sales Operating expenses Net income Add: Beg RE Deduct: Dividends RE December 2011 910 21.25 (500) (200) 231.25 192.5 (100) 323.75 400 0 (250) (90) 60 100 (40) 120 33.75 Balance Sheet Cash Dividends receivable AR Inventory Plant Assets SInvestment in Sly - 85% Total Assets 17 120 300 880 527 1,877.75 10 0 70 150 500 0 730 AP Dividends payable (Dec. Dividend - 2017) Cap Stk RE Total equities 154 0 1.400 323.75 1.877.75 90 20 500 120 730