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 PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20x1 $ 228,500 Accounts Payable 65,000 Bonds Payable 106,000 Common Stock 616,000 Additional Paid In Capital (140,000) Retained Earnings 241, 500 $1,117,000 Total Liabilities & Equities 123,000 387,000 185,000 35,000 387,000 Total Assets $1,117,000 ES Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets SAUL CORPORATION Balance Sheet January 1, 20x1 69,000 Accounts Payable 105,000 onds Payable 186,000 Common Stock ($10 par) 616,000 Additional Paid-In Capital (237, 000) Retained Earnings $ 739,000 Total Liabilities & Equities $130,000 287,000 100,000 35,000 187,000 $739,000 On January 2, 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000. Required: 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 fist Consolidation Worksheet Entries A view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries h Pron 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.) PENNY MANUFACTURING COMPANY AND SUBSIDIARY Consolidated Balance Sheet Worksheet January 1, 20X1 Consolidation Entries Penny Saul Corp. DR CR Consolidated Balance Sheet Assets es Cash Accounts Receivable Inventory Buildings and Equipment Less Accumulated Depreciation Investment in Saul Corp Total Assets Liabilities & Stockholders' Equity Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings NCL in NA of Saul Corp Total Liabilities & Stockholders' Equity N