Phone Corporation acquired 70 percent of Smart Corporations common stock on December 31, 20X4, for $96,600. At that date, the fair value of the noncontrolling interest was $41,400. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

	Phone					Smart
Item	Corporation					Corporation
Cash		$	58,300				$	41,000
Accounts Receivable			95,000					61,000
Inventory			133,000					84,000
Land			79,000					31,000
Buildings & Equipment			426,000					265,000
Less: Accumulated Depreciation			(151,000	)				(77,000	)
Investment in Smart Corporation			96,600
Total Assets		$	736,900				$	405,000
Accounts Payable		$	135,500				$	30,000
Mortgage Payable			331,400					258,000
Common Stock			78,000					39,000
Retained Earnings			192,000					78,000
Total Liabilities & Stockholders Equity		$	736,900				$	405,000

At the date of the business combination, the book values of Smarts assets and liabilities approximated fair value except for inventory, which had a fair value of $90,000, and buildings and equipment, which had a fair value of $203,000. At December 31, 20X4, Phone reported accounts payable of $14,100 to Smart, which reported an equal amount in its accounts receivable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (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. (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.)

c. Prepare a consolidated balance sheet in good form. (Amounts to be deducted should be indicated with a minus sign.)

I already know about the accumulated depreciation was mistyped for part C. Just need help with the others.

Answer is complete but not entirely correct. Accounts Credit No Entry 1 Debit 39,000 78,000 Common stock Retained earnings Investment in Smart Corporation NCI in NA of Smart Corporation 78,400 X 33,600 B 2 6,000 16,000 X Inventory Buildings and equipment Investment in Smart Corporation NCI in NA of Smart Corporation 15,400 X 6,600 3 14,100 Accounts payable Accounts receivable 14,100 D 4 Accumulated depreciation Buildings and equipment >I 78,000 78,000 Answer is complete but not entirely correct. PHONE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X4 Consolidation Entries Phone Smart DR CR Corp. Corp. Consolidated $ 14,100 6,000 Assets Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Smart Corporation Total Assets Liabilities and Equity Accounts payable Mortgage payable Common stock Retained earnings NCI in NA of Smart Corporation Total Liabilities and Equity $ 58,300 95,000 133,000 79,000 426,000 (151,000) 96,600 $ 736,900 41,000 61,000 84,000 31,000 265,000 (77,000) $ 99,300 141,900 223,000 110,000 629,000 (150,000) 0 $ 1,053,200 16,000 X 78,000 78,000 96,600 100,000 $ 188,700 $ 405,000 $ $ $ 14,100 $ 135,500 331,400 78,000 192,000 30,000 258,000 39,000 78,000 39,000 78,000 151,400 589,400 78,000 192,000 41,400 1,052,200 41,400 41,400 $ 736,900 405,000 $ 131,100 $ $ Answer is complete but not entirely correct. PHONE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X4 Assets Cash $ 99,300 Accounts receivable 141,900 Inventory 223,000 Land 110,000 Buildings and equipment $ 629,000 Accumulated depreciation (15,100) 613,900 Total Assets $ 1,188,100 Liabilities Accounts payable $ 151,400 Mortgage payable 589,400 $ Stockholders' Equity: Controlling Interest Common stock Retained earnings Total Controlling Interest Noncontrolling interest 78,000 192,000 270,000 41,400 Total Stockholders' equity Total Liabilities and Stockholders' Equity 311,400 $ 1,052,200