Pavin acquires all of Stabler's outstanding shares on January 1, 2015. for $710,000 in cash. Of this amount, $55.000 was attributed to equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary On January 1, 2018,. Pavin reports $550,000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500. During 2018. Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35.000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still ovwes $58,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2018. Dividendss were both declared and paid during the current year Pavin Stabler $ (555,eee) 265, eee 183,5ee Revenues $ (815,eee) 480,e0e 150, eee 61,ee8 Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment (27,250) Loss on extinguishment of bonds Equity in Stabler's income (133,758) (257,750) $ (133,75e) Net income (370, eee) (257,750) 188,eee (447,750) (411, eee) (133,758) 102,eee Retained earnings, 1/1/18 Net income $ Dividends paid (442,750) Retained earnings, 12/31/18 60,eee 112,eee Cash and receivables 242,eee 288,e0e 787,750 Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks 268,750 566,eee 27e, eee $ 1,419,750 $ 1,e86,75e $ (294,eee) (125,eee) Total assets Accounts payable Bonds payable 3, ) (550, eee) 25, eee (334,eee) (447,750) Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders equity (145, eee) (442,750) (1,006,750) $ (1,419,750) Note: Credits are indicated by parentheses. Prepare a works heet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all deblt entrles Into one amount and enter this amount In the deblt column of the worksheet. Simllarly, combine all credit entries Into one amount and enter this amount In the credlt column of the worksheet. Amounts In the Deblt and Credit columns should be entered es. nositive..NeaatlMeamounts.for.the.Consalldated.Totals.celumn.should be.entered.wlth.a.minus.slan... PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Accounts Pavin Stabler Debit Credit Totals Revenues (815,000) (555,000) 265,000 Cost of goods sold 480,000 183,500 Expenses 150,000 Interest expense-bonds 61,000 0 Interest income-bond investment 0 (27,250) Loss on extinguishment of bonds 0 0 Equity in income of Stabler (133,750) 0 Net income (257,750) (133,750) 0 Retained earnings, 1/1/18 (370,000) (411,000) Retained earnings, 1/1/18 Net income (257,750) (133,750) 0 Dividends paid 102,000 180,000 Retained earnings, 12/31/18 (442,750) (447,750) 0 242.000 S Cash and receivables 60,000 200.000 112.000 Inventory Investment in Stabler 707,750 Investment in Pavin 0 268,750 568,000 Land, buildings, and equipment (net) 270,000 Trademarks 0 0 Total assets 1,419,750 1,008.750 S 0 Accounts payable (113,000) (294,000) Bonds payable (550,000) (125,000) 25,000 Discount on bonds 0 Common stock (334,000) (145,000) Retained earnings (447,750) (442,750) 0 Total liabilities and stockholders equity S (1.419,750) S (1,006,750) 0 0 S 0 Pavin acquires all of Stabler's outstanding shares on January 1, 2015. for $710,000 in cash. Of this amount, $55.000 was attributed to equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary On January 1, 2018,. Pavin reports $550,000 in bonds outstanding with a carrying amount of $512,000. Stabler purchases half of these bonds on the open market for $265,500. During 2018. Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of $180,000. All but $35.000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still ovwes $58,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2018. Dividendss were both declared and paid during the current year Pavin Stabler $ (555,eee) 265, eee 183,5ee Revenues $ (815,eee) 480,e0e 150, eee 61,ee8 Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment (27,250) Loss on extinguishment of bonds Equity in Stabler's income (133,758) (257,750) $ (133,75e) Net income (370, eee) (257,750) 188,eee (447,750) (411, eee) (133,758) 102,eee Retained earnings, 1/1/18 Net income $ Dividends paid (442,750) Retained earnings, 12/31/18 60,eee 112,eee Cash and receivables 242,eee 288,e0e 787,750 Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks 268,750 566,eee 27e, eee $ 1,419,750 $ 1,e86,75e $ (294,eee) (125,eee) Total assets Accounts payable Bonds payable 3, ) (550, eee) 25, eee (334,eee) (447,750) Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders equity (145, eee) (442,750) (1,006,750) $ (1,419,750) Note: Credits are indicated by parentheses. Prepare a works heet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all deblt entrles Into one amount and enter this amount In the deblt column of the worksheet. Simllarly, combine all credit entries Into one amount and enter this amount In the credlt column of the worksheet. Amounts In the Deblt and Credit columns should be entered es. nositive..NeaatlMeamounts.for.the.Consalldated.Totals.celumn.should be.entered.wlth.a.minus.slan... PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Accounts Pavin Stabler Debit Credit Totals Revenues (815,000) (555,000) 265,000 Cost of goods sold 480,000 183,500 Expenses 150,000 Interest expense-bonds 61,000 0 Interest income-bond investment 0 (27,250) Loss on extinguishment of bonds 0 0 Equity in income of Stabler (133,750) 0 Net income (257,750) (133,750) 0 Retained earnings, 1/1/18 (370,000) (411,000) Retained earnings, 1/1/18 Net income (257,750) (133,750) 0 Dividends paid 102,000 180,000 Retained earnings, 12/31/18 (442,750) (447,750) 0 242.000 S Cash and receivables 60,000 200.000 112.000 Inventory Investment in Stabler 707,750 Investment in Pavin 0 268,750 568,000 Land, buildings, and equipment (net) 270,000 Trademarks 0 0 Total assets 1,419,750 1,008.750 S 0 Accounts payable (113,000) (294,000) Bonds payable (550,000) (125,000) 25,000 Discount on bonds 0 Common stock (334,000) (145,000) Retained earnings (447,750) (442,750) 0 Total liabilities and stockholders equity S (1.419,750) S (1,006,750) 0 0 S 0