Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $300,300. On that date, the noncontrolling interest had a fair value of $128,700 and the book value of Square's net assets was $393,000. 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
	Plaza Corporation							Square Company
Item	Debit			Credit				Debit			Credit
Cash and Receivables	$	90,300						$	94,000
Inventory		219,000							128,000
Land, Buildings, & Equipment (net)		272,000							252,000
Investment in Square Company		305,252
Cost of Goods & Services		180,000							130,000
Depreciation Expense		35,000							25,000
Dividends Declared		30,000							5,000
Sales & Service Revenue				$	320,000						$	220,000
Income from Square Company					59,152
Accounts Payable					59,000							26,000
Common Stock					195,000							163,000
Retained Earnings					498,400							225,000
Total	$	1,131,552		$	1,131,552			$	634,000		$	634,000

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 Plazas books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. During 20X9, Square sold inventory costing $56,000 to Plaza for $81,000. 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.)

b. Prepare a consolidation worksheet as of December 31, 20X9. (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.)

Answer is complete but not entirely correct. No Entry Credit 1 Accounts Common stock Retained earnings Income from Square Company NCI in NA of Square Company Dividends declared Investment in Square Company NCI in NA of Square Company Debit 163,000 225,000 59,152 25,351 X 5,000 327,252 140,251 B 2 14,000 22,000 Land Goodwill Investment in Square Company NCI in NA of Square Company 25,200 10,800 3 Investment in Square Company NCI in NA of Square Company Cost of goods sold 47,200 13,800 62,000 D 4 199,000 Sales Cost of goods sold Inventory 157,952 41,048 Consolidated Financial Statement Worksheet December 31, 20X9 Consolidation Entries Plaza Corp. Square Co. DR CR Consolidated $ $ 199,000 $ 320,000 (180,000) (35,000) 59,152 164,152 $ 220,000 (130,000) (25,000) 157,952 61,000 341,000 (152,048) 1,000 0 189,952 (25,351) 164,601 65,000 59,152 258,152 25,351 X $ 283,503 218,952 164,152 $ 65,000 218,952 $ $ $ $ 225,000 283,503 Income Statement Sales Less: COGS Less: Depreciation Expense Income from Square Company Consolidated Net Income NCI in Net Income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash and Receivable Inventory Land, Buildings, & Equipment (net) Investment in Square Company Goodwill Total Assets Accounts Payable Common Stock Retained Earnings NCI in NA of Square Company Total Liabilities & Equity 498,400 164,152 (30,000) 632,552 $ 225,000 65,000 (5,000) $ 285,000 218,952 5,000 223,952 498,400 164,601 (30,000) 633,001 $ $ 508,503 $ $ $ $ 90,300 219,000 272,000 305,252 94,000 128,000 252,000 41,048 25,200 14,000 47,200 22,000 83,200 $ $ $ $ 66.248 $ $ 184,300 305,952 538,000 327,252 22,000 1,377,504 85,000 195,000 633,001 (3,000) 910,001 $ 886,552 59,000 195,000 632,552 $ 474,000 26,000 163,000 285,000 163,000 508,503 13,800 $ 685,303 223,952 10,800 234,752 886,552 $ 474,000 $ $