Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1, 20x7 for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20x8, included the following amounts: Sheet Company Debit Credit $ 31,000 71,000 118,000 30,000 150,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Sheet Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Income from Sheet Company Pillow Corporation Debit Credit 59,000 83,000 275,000 80,000 500,000 206,200 490,000 25,000 62,000 45,000 $ 180,000 86,000 200,000 300,000 385,000 650,000 24,200 $1,825, 200 $1,825,200 310,000 15,000 100,000 25,000 $ 90,000 30,000 70,000 50,000 140,000 470,000 $850,000 $850,000 Additional Information 1. On January 1, 20x7. Sheet reported net assets with a book value of $150,000 and a fair value of $191,250. Goodwill of $25,000 was recorded at the acquisition. Accumulated depreciation on buildings and equipment was $60,000 on the acquisition date Sheet's depreciable assets had an estimated economic life of 11 years on the date of combination 2. At December 31, 20x8, Pillow's management reviewed the amount attributed to goodwill and concluded goodwill was impaired and should be reduced to $14,000. Goodwill and goodwill impairment were assigned proportionately to the controlling and 2. At December 31, 20x8, Pillow's management reviewed the amount attributed to goodwill and concluded goodwill was impaired and should be reduced to $14,000. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. 3. Pillow used the equity method in accounting for its investment in Sheet 4. Detailed analysis of receivables and payables showed that Pillow owed Sheet $9,000 on December 31, 20x8. 5. Assume that the Investment in Sheet Company at 1/1/X8 is $202,000 Required: a Prepare all journal entries recorded by Pillow with regard to its investment in Sheet during 20x8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the amortization of the excess acquisition price. Note: Enter debits before credits General Journal Dobit Credit Ivont 3 b. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements for 20x8. (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