Paper Company acquired 80 percent of Scissor Company's outstanding common stock for $296,000 on January 1, 20X8, when the book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows: Cash Accounts Receivable Inventory Investment in Scissor Company Land Buildings and Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Scissor Company Total Required: Paper Company Scissor Company Debit Credit Debit Credit $ 191,000 140,000 190,000 $ 46,000 60,000 120,000 350,400 0 250,000 125,000 875,000 250,000 250,000 155,000 65,000 12,000 280,000 50,000 80,000 25,000 $ 565,000 $ 36,000 77,000 27,000 250,000 100,000 625,000 250,000 280,000 120,000 800,000 310,000 74,400 0 $ 2,671,400 $ 2,671,400 $ 843,000 $ 843,000 a. Prepare any equity method entry(ies) related to the investment in Scissor Company during 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 2 3 Record the initial investment in Scissor Company Note: Enter dets before credits. Event A Record entry General Journal Debit Credit > Journal entry worksheet < 1 2 3 Record Paper Company's share of Scissor Company's 2008 Income. Note: Enter debts before dis Event B General Journal Debit Credit Recond entry Clear entry > Journal entry worksheet < 1 2 Record Paper Company's share of Scissor Company's 2008 dividend. Note: Enter debts before credits Event C. General Journal Debit Credit Second entry Clew entry > b. Prepare a consolidation worksheet for 20XB. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting 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. Income Statement Sales Less: COGS Less: Depreciation expense Less: Salling & Administrative Expense Income from Scissor Company Consolidated net income NCI in Net Income Controlling interest in Net Income Statement of Retained Earnings Beginning balance Not income Less: Dividends declared Ending Balance Balance Sheet Accotc Cash Accounts receivable Inventory Investment in Scissor Company Land Buildings and equipment Less: Accumulated depreciation Total Assets Liabilities & Stookholders' Equity Accounts payable Bonds payable Common stock Retained eamings NCI in NA of Scissor Company Total Liabilities & Stockholders' Equity PAPER COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet December 31, 208 Paper Company $ S Boscor Company Consolidation Entriec Consolidated Debit Credit D $ S $ $ $