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 PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20x1 $ 246,500 Accounts Payable 62,000 Bonds Payable 103,000 Common Stock 611,000 Additional Paid-In Capital (134,000) Retained Earnings 246,750 $1,135,250 Total Liabilities & Equities 127,250 386,000 193,000 43,000 386,000 $1,135,250 Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets SAUL CORPORATION Balance Sheet January 1, 20x1 $ 64,000 Accounts Payable 102,000 Bonds Payable 183,000 Common Stock ($10 par) 611,000 Additional Paid-In Capital (238,000) Retained Earnings $ 722,000 Total Liabilities & Equities $ 107,000 286,000 100,000 43,000 186,000 $722,000 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.) 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 list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Credit Event 1 Debit 125,000 186,000 Accounts Common stock Retained earnings Additional paid-in capital INCI in NA of Saul Corporation Investment in Saul Corporation Record entry Clear entry view consolidation entries 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 $ 0 $ 0 $ 0 $ 0 $ 0 Assets 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 NCI in NA of Saul Corp. Total Liabilities & Stockholders' Equity 0 $ 0 $ 0 $ 0 $ 0 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 PENNY MANUFACTURING CORPORATION Balance Sheet January 1, 20x1 $ 246,500 Accounts Payable 62,000 Bonds Payable 103,000 Common Stock 611,000 Additional Paid-In Capital (134,000) Retained Earnings 246,750 $1,135,250 Total Liabilities & Equities 127,250 386,000 193,000 43,000 386,000 $1,135,250 Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets SAUL CORPORATION Balance Sheet January 1, 20x1 $ 64,000 Accounts Payable 102,000 Bonds Payable 183,000 Common Stock ($10 par) 611,000 Additional Paid-In Capital (238,000) Retained Earnings $ 722,000 Total Liabilities & Equities $ 107,000 286,000 100,000 43,000 186,000 $722,000 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.) 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 list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Credit Event 1 Debit 125,000 186,000 Accounts Common stock Retained earnings Additional paid-in capital INCI in NA of Saul Corporation Investment in Saul Corporation Record entry Clear entry view consolidation entries 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 $ 0 $ 0 $ 0 $ 0 $ 0 Assets 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 NCI in NA of Saul Corp. Total Liabilities & Stockholders' Equity 0 $ 0 $ 0 $ 0 $ 0