Phelps Corporation owns all of the common stock of Stern Company. Each company maintains its own accounting records and prepares separate financial statements. Balance sheets for each company as of December 31, 20Y8, are as follows:

Phelps Corporation and Subsidiary Balance Sheets December 31, 20Y8

Line Item Description	Phelps Corporation	Stern Company
Assets
Cash	30,500	20,500
Accounts Receivable	29,100	20,000
Inventory	80,000	35,250
Investment in Stern Company	85,750
Other assets	300,000	40,000
Total assets	525,350	115,750
Liabilities and Stockholders Equity
Accounts Payable	70,000	30,000
Common Stock	300,000	40,000
Retained Earnings	155,350	45,750
Total liabilities and stockholders equity	525,350	115,750

a. Prepare a spreadsheet for consolidating the balance sheets of Phelps Corporation and Stern Company. If an amount box does not require an entry, leave it blank.

Phelps Corporation and Subsidiary Consolidated Balance Sheet Work Sheet December 31, 20Y8

Line Item Description	Phelps Corporation	Stern Company	Eliminations Debit	Eliminations Credit	Consolidated Balance Sheet
Assets
Accounts payableCashCommon stockMiscellaneous expenseRetained earnings	fill in the blank 2	fill in the blank 3	fill in the blank 4	fill in the blank 5	fill in the blank 6
Accounts receivableAccounts payableCommon stockMiscellaneous expenseRetained earnings	fill in the blank 8	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Accounts payableCommon stockInventoryMiscellaneous expenseRetained earnings	fill in the blank 14	fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
Accounts payableCommon stockInvestment in Stern CompanyMiscellaneous expenseRetained earnings	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Accounts payableCommon stockMiscellaneous expenseOther assetsRetained earnings	fill in the blank 26	fill in the blank 27	fill in the blank 28	fill in the blank 29	fill in the blank 30
Total Assets	fill in the blank 31	fill in the blank 32			fill in the blank 33
Liabilities and Stockholders Equity
Accounts payableAccounts receivableCashInventoryOther assets	fill in the blank 35	fill in the blank 36	fill in the blank 37	fill in the blank 38	fill in the blank 39
Accounts receivableCashCommon stockInventoryOther assets	fill in the blank 41	fill in the blank 42	fill in the blank 43	fill in the blank 44	fill in the blank 45
Accounts receivableCashInventoryOther assetsRetained earnings	fill in the blank 47	fill in the blank 48	fill in the blank 49	fill in the blank 50	fill in the blank 51
Total liabilities and stockholders' equity	fill in the blank 52	fill in the blank 53	fill in the blank 54	fill in the blank 55	fill in the blank 56

b. Prepare a December 31, 20Y8, consolidated balance for Phelps Corporation and Subsidiary.

Phelps Corporation and Subsidiary Consolidated Balance Sheet December 31, 20Y8

Line Item Description	Amount
Assets
Accounts payableCashCommon stockMiscellaneous expenseRetained earnings	$fill in the blank 58
Accounts receivableAccounts payableCommon stockMiscellaneous expenseRetained earnings	fill in the blank 60
Accounts payableCommon stockInventoryMiscellaneous expenseRetained earnings	fill in the blank 62
Accounts payableCommon stockMiscellaneous expenseOther assetsRetained earnings	fill in the blank 64
Total Assets	$fill in the blank 65
Liabilities
Accounts payableCommon stockInventoryMiscellaneous expenseRetained earnings	$fill in the blank 67
Stockholders' Equity
Accounts payableCashCommon stockInventoryOther assets	$fill in the blank 69
Accounts payableCashInventoryOther assetsRetained earnings	fill in the blank 71
Total stockholders equity	fill in the blank 72
Total liabilities and stockholders' equity	$fill in the blank 73

c. Assume that the accounts receivable of Phelps Corporation include $3,500 that is due from Stern Company. What would the consolidated balance sheet report for accounts receivable and accounts payable?

Line Item Description	Amount
Accounts receivable	$fill in the blank 74
Accounts payable	$fill in the blank 75