Pineapple Company acquired an 80% interest in Samsung Company for $272,000 cash on January 1, 2018. Samsung had the following Balance Sheet on the date of acquisition: Samsung Company Balance Sheet January 1, 2018 Assets ($) Liabilities ($) Accounts Receivable 90,000 Accounts Payable 50,000 Depreciable Fixed Assets 200,000 Bonds Payable 50,000 Land 50,000 Discount on Bonds Payable (1,620) Goodwill 10,000 Common Stock ($10 par) 100,000 Retained Earnings 151,620 Total Assets 350,000 Total Liabilities & Equity 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10 year remaining life. Samsung sold a piece of Land to Pineapple for $60,000 on January 1, 2019. It cost Samsung $50,000 to purchase the land. On January 1, 2020, Samsung held merchandise acquired from Pineapple for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2020, Pineapple sold $60,000 worth of merchandise to Samsung. Samsung held $30,000 of this merchandise at December 31, 2020. This ending inventory and an applicable gross profit of 35%. Samsung owed Pineapple $23,000 on December 31, 2020 as a result of these intercompany sales. On January 1, 2020, Pineapple held merchandise acquired from Samsung for $10,000. This beginning inventory had an applicable gross profit of 25%. During 2020, Samsung sold $40,000 worth of merchandise to Pineapple. Pineapple held $6,000 of this merchandise at December 31, 2020. This ending inventory had an applicable gross profit of 30%. Pineapple owed Samsung $11,000 on December 31, 2020 as a result of these intercompany sales. On January 1, 2017, Samsung received $48,055 for $50,000 of 8%, 5 year bonds it issued when the market rate was 9%. When Pineapple purchased these bonds for $47,513 on January 1, 2019, the market rate was 10%. Both companies use the Effective Interest method to amortize the premium/discount on the bonds. Pineapple and Samsung used the following bond amortization schedules: Samsung Pineapple Period Nominal Interest ($) Effective Interest ($) Balance ($) Period Nominal Interest ($) Effective Interest ($) Balance ($) Jan 1, 2017 48,055 Jan 1, 2017 Jan 1, 2018 4,000 4,325 48,380 Jan 1, 2018 Jan 1, 2019 4,000 4,354 48,734 Jan 1, 2019 47,513 Jan 1, 2020 4,000 4,386 49,120 Jan 1, 2020 4,000 4,751 48,264 Jan 1, 2021 4,000 4,421 49,541 Jan 1, 2021 4,000 4,826 49,090 Jan 1, 2022 4,000 4,459 50,000 Jan 1, 2022 4,000 4,909 50,000 Pineapple and Samsung had the following trial balances on December 31, 2020: Balances Pineapple Samsung Accounts Receivable 124,000 85,000 Inventory 6,000 30,000 Depreciable Fixed Assets 400,000 200,000 Accumulated Depreciation (130,000) (40,000) Land 60,000 Investment in Subsidiary 272,000 Investment in Subsidiary Bonds 49,090 Goodwill 10,000page 5 Accounts Payable (80,000) Bonds Payable (50,000) Discount on Bonds Payable 459 Common Stock (300,000) (100,000) Retained Earnings, January 1 (348,264) (134,880) Sales (200,000) (100,000) Expenses 160,000 85,000 Interest Revenue (4,826) Interest Expense 4,421 Dividend Income (from Subsidiary) (8,000) Dividends Declared 0 10,000 Total 0 0 Required: Prepare the Eliminating and Adjusting Entries, complete the schedules and worksheet necessary to produce the consolidated financial statements of Pineapple Company and its subsidiary for the year ended December 31, 2020. Show all workings