Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $500,000 in cash. Of this amount, $34,000 was attributed to equipment with a 10-year remaining life and $44,000 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 $340,000 in bonds outstanding with a carrying amount of $320,400. Stabler purchases half of these bonds on the open market for $165,100. During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $96,000 was transferred at a price of $120,000. All but $14,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $37,000 for inventory shipped from Pavin during December The following financial figures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. $ Stabler $ (513,000) 244,000 162,500 0 (19,100) Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's incone Net income Retained earnings, 1/1/18 Net income Dividends paid Pavin (752,000) 459,000 129,000 40,000 0 0 (125,600) (249,600) (349,000) (249,600) 159,000 $ $ $ (125, 600) $ (369,000) (125,600) 81,000 18 Pavin $ (752,000) 459,000 129,000 40,000 0 0 (125,600) $ (249,600) $ (349,000) (249,600) 159,000 $ (439,600) $ 221,000 179,000 615,600 0 249,000 0 $ 1,264,600 $ (188,000) (340,000) 16,000 (313,000) (439,600) $(1,264,600) Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity Stabler $ (513,000) 244,000 162,500 0 (19,100) 0 0 $ (125,600) $ (369,000) (125,600) 81,000 $ (413,600) 39,000 91,000 0 166,000 545,000 0 $ 841,000 $ (199,400) (104,000) 0 (124,000) (413,600) $ (841,000) $ Note: Credits are indicated by parentheses. Consolidated Accounts Totals $ (1,145,000) Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Pavin Stabler Debit Credit $ (752,000) $ (513,000) $ 120,000 459,000 244,000 2,800 120,000 129,000 162,500 40,000 0 0 (19,100) 0 0 (125,600) 0 $ (249,600) $ (125,600) (349,000) (369,000) (249,600) (125,600) 159,000 81,000 $ (439,600) $ (413,600) $ 221,000 $ 39,000 179,000 91,000 $ (1.145,000) (1,145,000) $ (1.145,000) 04 Onn (125,600) $ (249,600) $ (349,000) 0 (125,600) $ (1.145,000) (1.145,000) $ (1,145,000) Equity in income of Stabler Net income Retained earnings, 1/1/18 Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin Land, buildings, and equipment (net) Trademarks (369,000) (125,600) 81,000 (413,600) 39,000 91,000 0 166,000 545,000 (249,600) 159,000 $ (439,600) $ $ 221,000 $ 179,000 615,600 0 249,000 0 $ 1,264,600 $ (188,000) (340,000) 16,000 (313,000) (439,600) $ (1,264,600) $ $ 0 Total assets Accounts payable Bonds payable Discount on bonds 0 841,000 (199,400) (104,000) 0 (124,000) (413,600) (841,000) $ Common stock Retained earnings Total liabilities and stockholders' equity (1.145,000) 120,000 $ (1,145,000) 122,800 $ $ Net income Retained earnings, 1/1/18 Net income Dividends paid Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earning (above) Total liabilities and stockholders' equity $ (249,600) (349,000) (249,600) 159,000 $ (439,600) $ 221,000 179,000 615,600 0 249,000 0 $ 1,264,600 $ (188,000) (340,000) 16,000 (313,000) (439,600) $(1,264,600) $ (125,600) $ (369,000) (125,600) 81,000 $ (413,600) $ 39,000 91,000 0 166,000 545,000 0 $ 841,000 $ (199,400) (104,000) 0 (124,000) (413,600) $ (841,000) Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combin all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entrie Into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should b entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign.)