Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul's book value. The balance sheets of the two companies for January 1, 20X1, are as follows: Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Saul Corporation Total Assets Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20X1 Accounts Payable $ 244,500 79,000 103,000 Bonds Payable Common Stock 616,000 Additional Paid-In Capital $ 121,000 399,000 189,000 39,000 (149,000) Retained Earnings 399,000 253,500 $1,147,000 Total Liabilities & Equities $1,147,000 SAUL CORPORATION Balance Sheet January 1, 20X1 $ 75,000 Accounts Payable 119,000 Bonds Payable 183,000 Common Stock ($10 par) 616,000 (227,000) Additional Paid-In Capital Retained Earnings $ 766,000 Total Liabilities & Equities $129,000 299,000 100,000 39,000 199,000 $766,000 On January 2, 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000. a. Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries A Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Common stock 125,000 Retained earnings 199,000 Additional paid-in capital 164,000 Investment in Saul Corporation NCI in NA of Saul Corporation > b. Prepare a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) Consolidated Balance ShGEL WORKSheet January 1, 20X1 Consolidation Entries Penny Saul Corp. DR CR Consolidated Balance Sheet Assets Cash Accounts Receivable $ 94,500 225,000 $ 319,500 79,000 119,000 198,000 Inventory Buildings and Equipment 103,000 183,000 286,000 616,000 616,000 1,232,000 Less: Accumulated Depreciation Investment in Saul Corp. Total Assets Liabilities & Stockholders' Equity Accounts Payable (149,000) (149,000) (253,500) x 150,000 $ $ 490,000 $ 150,000 $ 0 $ 1,886,500 1,143,000 $ 121,000 ( $ 129,000 399,000 189,000 39,000 399,000 Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings NCI in NA of Saul Corp. Total Liabilities & Stockholders' Equity $ $ 916,000 0 $ 0 $ 2,063,000 1,147.000 299,000 125,000 164,000 199,000 $ 250,000 698,000 314,000 203,000 598,000