Pavin acquires all of Stablers outstanding shares on January 1, 2015, for $530,000 in cash. Of this amount, $37,000 was attributed to equipment with a 10-year remaining life and $47,000 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 $370,000 in bonds outstanding with a carrying amount of $349,200. Stabler purchases half of these bonds on the open market for $179,800.

During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $108,000 was transferred at a price of $135,000. All but $17,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $40,000 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.

	Pavin				Stabler
Revenues	$	(761,000	)		$	(519,000	)
Cost of goods sold		462,000				247,000
Expenses		132,000				165,500
Interest expensebonds		43,000				0
Interest incomebond investment		0				(21,050	)
Loss on extinguishment of bonds		0				0
Equity in Stablers income		(127,550	)			0
Net income	$	(251,550	)		$	(127,550	)
Retained earnings, 1/1/18	$	(352,000	)		$	(375,000	)
Net income		(251,550	)			(127,550	)
Dividends paid		162,000				84,000
Retained earnings, 12/31/18	$	(441,550	)		$	(418,550	)
Cash and receivables	$	224,000			$	42,000
Inventory		182,000				94,000
Investment in Stabler		629,550				0
Investment in Pavin bonds		0				180,250
Land, buildings, and equipment (net)		252,000				548,000
Trademarks		0				0
Total assets	$	1,287,550			$	864,250
Accounts payable	$	(179,000	)		$	(211,700	)
Bonds payable		(370,000	)			(107,000	)
Discount on bonds		19,000				0
Common stock		(316,000	)			(127,000	)
Retained earnings (above)		(441,550	)			(418,550	)
Total liabilities and stockholders equity	$	(1,287,550	)		$	(864,250	)

Note: Credits are indicated by parentheses.

Prepare a worksheet to produce consolidated balances.

PAVIN AND STABLER
Consolidation Worksheet
For Year Ending December 31, 2018
			Consolidation Entries		Consolidated
Accounts	Pavin	Stabler	Debit	Credit	Totals
Revenues	$(761,000)	$(519,000)
Cost of goods sold	462,000	247,000
Expenses	132,000	165,500
Interest expensebonds	43,000	0
Interest incomebond investment	0	(21,050)
Loss on extinguishment of bonds	0	0
Equity in income of Stabler	(127,550)	0
Net income	$(251,550)	$(127,550)			$0
Retained earnings, 1/1/18	(352,000)
Retained earnings, 1/1/18		(375,000)
Net income	(251,550)	(127,550)			0
Dividends paid	162,000	84,000
Retained earnings, 12/31/18	$(441,550)	$(418,550)			$0
Cash and receivables	$224,000	$42,000
Inventory	182,000	94,000
Investment in Stabler	629,550	0
Investment in Pavin	0	180,250
Land, buildings, and equipment (net)	252,000	548,000
Trademarks	0	0
Total assets	$1,287,550	$864,250			$0
Accounts payable	(179,000)	(211,700)
Bonds payable	(370,000)	(107,000)
Discount on bonds	19,000	0
Common stock	(316,000)	(127,000)
Retained earnings	(441,550)	(418,550)			0
Total liabilities and stockholders equity	$(1,287,550)	$(864,250)	$0	$0	$0