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 Sauls book value The balance sheets of the two companies for January 1, 20X1, are as follows PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20X1 Cash $ 230,500 Accounts Payable $ 94,500 Accounts Receivable 61,000 Bonds Payable 396,000 Inventory 100,000 Common Stock 198,000 Buildings Equipment 620,000 Additional Paid In Capital 48,000 Less Accumulated Depreciation (137,000 ) Retained Earnings 396,000 Investment in Saul Corporation 258,000 Total Assets $ 1,132,500 Total Liabilities Equities $ 1,132,500 SAUL CORPORATION Balance Sheet January 1, 20X1 Cash $ 79,000 Accounts Payable $ 119,000 Accounts Receivable 101,000 Bonds Payable 296,000 Inventory 180,000 Common Stock ($10 par) 100,000 Buildings Equipment 620,000 Additional Paid In Capital 48,000 Less Accumulated Depreciation (221,000 ) Retained Earnings 196,000 Total Assets $ 759,000 Total Liabilities Equities $ 759,000 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 ) 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 )

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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

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 Sauls book value. The balance sheets of the two companies for January 1, 20X1, are as follows:

PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20X1

Cash

230,500

Accounts Payable

94,500

Accounts Receivable

61,000

Bonds Payable

396,000

Inventory

100,000

Common Stock

198,000

Buildings & Equipment

620,000

Additional Paid-In Capital

48,000

Less: Accumulated Depreciation

(137,000

)

Retained Earnings

396,000

Investment in Saul Corporation

258,000

Total Assets

1,132,500

Total Liabilities & Equities

1,132,500

SAUL CORPORATION Balance Sheet January 1, 20X1
Cash	$	79,000		Accounts Payable	$	119,000
Accounts Receivable		101,000		Bonds Payable		296,000
Inventory		180,000		Common Stock ($10 par)		100,000
Buildings & Equipment		620,000		Additional Paid-In Capital		48,000
Less: Accumulated Depreciation		(221,000	)	Retained Earnings		196,000
Total Assets	$	759,000		Total Liabilities & Equities	$	759,000

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.)

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.)