Payday Company acquired an 80% interest in Sunday Company for 5272,000 cash on January 1, 2018 Sunday had the following Balance Sheet on the date of acquisition Sunday Company Balance Sheet January 1, 2018 Assets (5) Liabilities (9) Accounts Receivable 90,000 Ants Payable 50.000 Depreciable and Assets 200.000 Honds Payable 50.000 Land 50,000 Discount on Bonds Payable (1.620) Goodwill 10,000 Common Stock (510gar) 100.000 Betained Earning 1516120 Total Assets 350,000 Total Liabilities & Equity 350,000 The excess of the price paid over book valor is attributable to the Depreciable Fund Assets, which have a fair value of $260.000. The Depreciable Assets have a 10-year remaining life Sunday sold a piece of land to Payday for $60,000 on January 1, 2019. It cost Sunday $50,000 to purchase the land from an external party On January 1, 2020, Sunday held merchandise acquired from Payday for $20,000. This beginning inventory had an applicable gross profit of 40% During 2020. Payday sold $60,000 worth of merchandise to Sunday Sunday held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable prost profit of 35, Sunday owed Payday 523,000 on December 31, 2020 a result of these intercompany sales On January 1, 2020,Payday held merchandise acquired from Sunday for $10,000. This beginning inventory had an applicable gros prodit of 25% During 2020, Sunday sold 540,000 worth of merchandise to Payday Payday held $6.000 of this merchandise at December 31, 2020. This ending inventory had an applicable pro profit of 30%. Payday owed Sunday 11,000 on December 31, 2020 as a result of these intercompany sales Sunday sold bench on January 1, 2017 with a face value of $50,000. These bonds carry a coupon interest rate of 8% and term te maturity of 5 years. The bonds were issued when the market rate was. When Payday purchased these bends on wary 1, 2019, the market rate was 10%. Both companies use the Elfective interest method to amortize the premium/discount on the bonds Payday and Sunday had the following trial balances on December 31, 2020 Halances Payday Sunday Accounts Receivable 124.000 5.600 Inventory 6.000 30 000 Depreciable Fred Assets 400.000 200.000 Acumulated Lection ID 0000 180.000) Land 60.000 Tavestment in Sesidury 272.000 Investment in Stary Bands 19.090 Goodwill 107000 Accounts Payable (80000 Bandaraya 150.000) Discount on Ronds layan Common Stock (300.000) (100.000) Retained lamins, anary1 (103) Sales (2007000) (100.000 Expenses 160,000 315.000 Interest Rever Interest Expense 4421 Dividend Income Dividendis Declared 0 10.000 Total 0 (2) Prepare the Eliminating and desting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Payday Company and its subsidiary for the year ended December 21, 2018 Payday Company acquired an 80% interest in Sunday Company for 5272,000 cash on January 1, 2018 Sunday had the following Balance Sheet on the date of acquisition Sunday Company Balance Sheet January 1, 2018 Assets (5) Liabilities (9) Accounts Receivable 90,000 Ants Payable 50.000 Depreciable and Assets 200.000 Honds Payable 50.000 Land 50,000 Discount on Bonds Payable (1.620) Goodwill 10,000 Common Stock (510gar) 100.000 Betained Earning 1516120 Total Assets 350,000 Total Liabilities & Equity 350,000 The excess of the price paid over book valor is attributable to the Depreciable Fund Assets, which have a fair value of $260.000. The Depreciable Assets have a 10-year remaining life Sunday sold a piece of land to Payday for $60,000 on January 1, 2019. It cost Sunday $50,000 to purchase the land from an external party On January 1, 2020, Sunday held merchandise acquired from Payday for $20,000. This beginning inventory had an applicable gross profit of 40% During 2020. Payday sold $60,000 worth of merchandise to Sunday Sunday held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable prost profit of 35, Sunday owed Payday 523,000 on December 31, 2020 a result of these intercompany sales On January 1, 2020,Payday held merchandise acquired from Sunday for $10,000. This beginning inventory had an applicable gros prodit of 25% During 2020, Sunday sold 540,000 worth of merchandise to Payday Payday held $6.000 of this merchandise at December 31, 2020. This ending inventory had an applicable pro profit of 30%. Payday owed Sunday 11,000 on December 31, 2020 as a result of these intercompany sales Sunday sold bench on January 1, 2017 with a face value of $50,000. These bonds carry a coupon interest rate of 8% and term te maturity of 5 years. The bonds were issued when the market rate was. When Payday purchased these bends on wary 1, 2019, the market rate was 10%. Both companies use the Elfective interest method to amortize the premium/discount on the bonds Payday and Sunday had the following trial balances on December 31, 2020 Halances Payday Sunday Accounts Receivable 124.000 5.600 Inventory 6.000 30 000 Depreciable Fred Assets 400.000 200.000 Acumulated Lection ID 0000 180.000) Land 60.000 Tavestment in Sesidury 272.000 Investment in Stary Bands 19.090 Goodwill 107000 Accounts Payable (80000 Bandaraya 150.000) Discount on Ronds layan Common Stock (300.000) (100.000) Retained lamins, anary1 (103) Sales (2007000) (100.000 Expenses 160,000 315.000 Interest Rever Interest Expense 4421 Dividend Income Dividendis Declared 0 10.000 Total 0 (2) Prepare the Eliminating and desting Entries, the Schedules and Worksheet necessary to produce the consolidated financial statements of Payday Company and its subsidiary for the year ended December 21, 2018