Penn Corporation purchased 80 percent ownership of ENC Company on January 1, 20x2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of ENC. On January 1, 20x4, Penn sold 2.000 shares of ENC's stock for $85.000 to American School Products and recorded a 314.000 increase in additional paid-in capital. Trial balances for the companies on December 31, 20x4, contain the following data ENC Company Debit 51.000 Penn Debit $ 32.000 Credit Cash $ 37.000 71.000 121,000 70.000 167.400 204.000 23.000 24.000 16.000 101,000 Buildings & Equipment investment in ENC Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared 240,000 94,000 18,000 28.000 11,000 Accounts Payable Bonds Payable Common Stock (510 par) Additional Paid-in Capital Retained Earnings Sales Income from ENC $ 170.000 116.000 190.000 200.000 65.000 290.000 274.000 23.400 s 95.000 33.000 22.000 100.000 21,000 130,000 170.000 Total S 1,328.400 $ 1,328,400 580.000 $ 580.000 ENC's net income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20x4. Penn uses the equity method in accounting for its investment in ENC. Required: a Prepare the consolidation entries needed to complete a worksheet for 20X4. (lf no entry is required for a transaction-event, select 0 journal entry required" in the first account field.) 3 Answer is not complete. No Event Debit 100.000 21.000 130.000 Credit Common stock Addisional Paid-n capital Retained eamings income from ENC Company NCI in N of ENC Company Dividends declared Investment in ENC Company NCI in NA of ENC Company 11,000 Penn Corporation purchased 80 percent ownership of ENC Company on January 1, 20x2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of ENC. On January 1, 20x4, Penn sold 2.000 shares of ENC's stock for $85.000 to American School Products and recorded a 314.000 increase in additional paid-in capital. Trial balances for the companies on December 31, 20x4, contain the following data ENC Company Debit 51.000 Penn Debit $ 32.000 Credit Cash $ 37.000 71.000 121,000 70.000 167.400 204.000 23.000 24.000 16.000 101,000 Buildings & Equipment investment in ENC Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared 240,000 94,000 18,000 28.000 11,000 Accounts Payable Bonds Payable Common Stock (510 par) Additional Paid-in Capital Retained Earnings Sales Income from ENC $ 170.000 116.000 190.000 200.000 65.000 290.000 274.000 23.400 s 95.000 33.000 22.000 100.000 21,000 130,000 170.000 Total S 1,328.400 $ 1,328,400 580.000 $ 580.000 ENC's net income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20x4. Penn uses the equity method in accounting for its investment in ENC. Required: a Prepare the consolidation entries needed to complete a worksheet for 20X4. (lf no entry is required for a transaction-event, select 0 journal entry required" in the first account field.) 3 Answer is not complete. No Event Debit 100.000 21.000 130.000 Credit Common stock Addisional Paid-n capital Retained eamings income from ENC Company NCI in N of ENC Company Dividends declared Investment in ENC Company NCI in NA of ENC Company 11,000
