Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $298,200. On that date, the noncontrolling interest had a fair value of $127,800 and the book value of Square's net assets was $390,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired.

 

PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20x9 Square Company Debit $ 89,000 122,000 255,000 Plaza Corporation Debit Item Credit Credit Cash and Receivables Inventory Land, Buildings, & Equipment (net) Investment in Square Company Cost of Goods & Services Depreciation Expense Dividends Declared Sales & Service Revenue Income from Square Company Accounts Payable Common Stock Retained Earnings $ 85, 300 205,000 275,000 299,652 186,000 28,000 23,000 136,000 18,000 5,000 $ 314,000 55,652 52,000 183,000 497, 300 $214, 000 26,000 166,000 219,000 $625,000 $625,000 Total $1,101,952 $1,101,952 On January 1, 20x9, Plaza's inventory contained $46,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. During 20X9, Square soid inventory costing $55,000 to Plaza for $80,000. Plaza held all inventory purchased from Square during 20X9 on December 31, 20X9. Also during 20X9, Plaza sold goods costing $70,800 to Square for $118,000. Square continues to hold $40,120 of its purchase from Plaza on December 31, 20X9. Assume Plaza uses the fully adjusted equity method. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)