Pepper Corporation acquired 100 percent ot Salt Company stock on January 1,208o70,000 Following are pre-cdosing trial balance amounts for Pepper Corporation and Salt Company as SALT CORPORATION PEPPER CORPORATION Debit Deblt 1,523,000 290,000 453,000 s Receivable 174,000 nventory Investment in Salt Corp. 225,000 360,000 196,000 197,000 18,000 21,000 57,000 750,000 25,000 Buildings Equipment Cost of Goods Sold 415,000 nse, Buildin Depreciation Expense, Equipment Selling & Administrative Expense Dividends Dedlared Accumulated Depreciation, BI Accumulated Depreciation, ccounts Payable Bonds Payable Common Stock ($1p 48,000 209,000 204,000 144,000 118,000 580,000 600,000 2,400,000 802,000 980,000 54,000 105,000 67,000 50,000 110,000 480,000 380,000 516,000 itional Paid In Capital Retained Earnin Sales Income from Salt Corp. 6,051,000S 6,051,000 1,762,0001762,000 1.On January 1,2018, the book values of Salt's net assets and liabilities approximated fair values. 2. Pepper Corporation uses the equity method to account for its Investment in Salt Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the OURNAL ENTRIES that were recorded by Pepper at the gcquisition date and during 2018 to account for its investment in Sait Company. These boldface figures should be used as check figures for your solution. next page anons e. Prepare the consolidation worksheet nor the period ended arnteau u& You may use the-te provided below gt on Conmen Stock (St par NETASSETS Pepper Corporation acquired 100 percent ot Salt Company stock on January 1,208o70,000 Following are pre-cdosing trial balance amounts for Pepper Corporation and Salt Company as SALT CORPORATION PEPPER CORPORATION Debit Deblt 1,523,000 290,000 453,000 s Receivable 174,000 nventory Investment in Salt Corp. 225,000 360,000 196,000 197,000 18,000 21,000 57,000 750,000 25,000 Buildings Equipment Cost of Goods Sold 415,000 nse, Buildin Depreciation Expense, Equipment Selling & Administrative Expense Dividends Dedlared Accumulated Depreciation, BI Accumulated Depreciation, ccounts Payable Bonds Payable Common Stock ($1p 48,000 209,000 204,000 144,000 118,000 580,000 600,000 2,400,000 802,000 980,000 54,000 105,000 67,000 50,000 110,000 480,000 380,000 516,000 itional Paid In Capital Retained Earnin Sales Income from Salt Corp. 6,051,000S 6,051,000 1,762,0001762,000 1.On January 1,2018, the book values of Salt's net assets and liabilities approximated fair values. 2. Pepper Corporation uses the equity method to account for its Investment in Salt Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the OURNAL ENTRIES that were recorded by Pepper at the gcquisition date and during 2018 to account for its investment in Sait Company. These boldface figures should be used as check figures for your solution. next page anons e. Prepare the consolidation worksheet nor the period ended arnteau u& You may use the-te provided below gt on Conmen Stock (St par NETASSETS
