Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Accumulated depreciation on this date was $24,000. Paper uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Paper and Scissor as of December 31, 20X9:

(Assume the company prepares the optional Accumulated Depreciation Elimination Entry.)

Required:

a.

Prepare any equity method journal entry(ies) related to the investment in Scissor Company during 20X9.

b.	Prepare a consolidation worksheet for 20X9

Paper Company Scissor Company Debit Credit Debit $116,000 97,000 115,000 Cash Accounts Receivable Inventory Investment in Scissor Stock Lad Buildings and Equipmernt Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings $ 232,000 165,000 193,000 515,000 250,000 875,000 278,000 65,000 312,000 90,000 125,000 250,000 178,000 12,000 58,000 30,000 $ 630,000 85,000 150.000 625,000 498,000 880,000 107,000 $ 48,000 40,000 100,000 250,000 188,000 355,000 0 5 0 Income from Scissor Total $2,975,000 $2,975,000 $981,000 $981,000