Peanut Butter acquires all of Jellys outstanding shares on January 1, 2015, for $620,000 in cash. Allocations of the purchase price included $46,000 to equipment with a 10-year remaining life and $56,000 to trademarks expensed over a 20-year period. Peanut Butter 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, Peanut Butter reports $460,000 in bonds outstanding with a carrying amount of $425,600. Jelly purchases half of these bonds on the open market for $221,400. During 2018, Peanut Butter begins to sell merchandise to Jelly. During that year, inventory costing $114,000 was transferred at a price of $150,000. All but $26,000 (at sales price) of these goods were resold to outside parties by year-end. Jelly still owes $49,000 for inventory shipped from Peanut Butter during December. The following financial information is available for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Peanut Butter Jelly Revenues $ (788,000) $ (537,000) Cost of goods sold 471,000 256,000 Expenses 141,000 174,500 Interest expensebonds 52,000 0 Interest incomebond investment 0 (21,400) Loss on extinguishment of bonds 0 0 Equity in Stablers income (127,900) 0 Net income $ (251,900) $ (127,900) Retained earnings, 1/1/18 $ (361,000) $ (393,000) Net income (251,900) (127,900) Dividends paid 171,000 93,000 Retained earnings, 12/31/18 $ (441,900) $ (427,900) Cash and receivables $ 233,000 $ 51,000 Inventory 191,000 103,000 Investment in Stabler 665,900 0 Investment in Pavin bonds 0 226,000 Land, buildings, and equipment (net) 261,000 557,000 Trademarks 0 0 Total assets $ 1,350,900 $ 937,000 Accounts payable $ (140,000) $ (257,100) Bonds payable (460,000) (116,000) Discount on bonds 16,000 0 Common stock (325,000) (136,000) Retained earnings (above) (441,900) (427,900) Total liabilities and stockholders equity $ (1,350,900) $ (937,000) a. Prepare the consolidating journal entries for the fiscal year end December 31, 2018. b. Prepare the consolidation worksheet for the fiscal year end December 31, 2018