Please help with the following problem.
Pavin acquires all of Stabler's outstanding shares on January 1, 2015, for $530,000 in cash. Dflhis amount, $37,000 was attributed to equipment with a 10-year remaining life and $47,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2018, Pavin reports $370,000 in bonds outstanding with a carrying amount of $349,200. Stabler purchases half of these bonds on the open market for $179,800. During 2018, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $108,000 was transferred at a price of $135,000. All but $17,000 {at sales price} of these goods were resold to outside parties by year-end. Stabler still owes $40,000 for inventory shipped from Pavin during December. The following nancial gures are for the two companies for the year ending December 31, 2018. Dividends were both declared and paid during the current year. Stabler $t519.aao) 24?.888 165.588 0 (21.858) 0 8 $(12?.558) $(3?5.888) (121.559) 84.888 $t413.ssa) $ 42.888 94.888 5 188.258 543.aaa a $ 354,253 Pavin Revenues $ (251.888) Cost of goods sold 452.888 Expenses 132.888 Interest expensebonds 43.888 Interest incomebond investment 8 Loss on extinguishment of bonds 8 Equity in Stabler's income (127.558) Net income Retained earnings. 111I13 $ (352.888) Net income (251.558) Dividends paid 152.888 Retained earnings. 12!31!18 $ (441.558) Cash and receivables $ 224.888 Inventory 182.888 Investment in Stabler 629.558 Investment in Pavin bonds 8 Land. buildings. and equipment {neti 252.888 Trademarks 8 Total assets $ 1.282.558 Accounts payable $ (179.888) Bonds payable (328.888) Discount on bonds 19.888 Common stock (318.888) Retained earnings (above) (441.558) Total liabilities and stockholders' equity $l1.237.558) $(211.?88) (191,939) 6 (122.888) (41B.558) $taa4.259) | Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation 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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign.) PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Accounts Pavin Stabler Debit Credit Totals Revenues $ (761,000 $ (519,000) Cost of goods sold 462,000 247,000 Expenses 32,000 165,500 Interest expense-bonds 43,000 Interest income-bond investment (21,050) Loss on extinguishment of bonds Equity in income of Stabler (127,550 Net income $ (251,550) $ (127,550) $ Retained earnings, 1/1/18 (352,000 Retained earnings, 1/1/18 (375,000 Net income 251,550 127,550) Dividends paid 162,000 84,000 Retained earnings, 12/31/18 (441,550 $ (418,550 $ Cash and receivables 224,000 $ 42,000 Inventory 182,000 94,000 Investment in Stabler 629,550 Investment in Pavin 180,250 Land, buildings, and equipment (net) 252,000 548,000 Trademarks Total assets $ 1,287,550 864.250 $ Accounts payable (179,000 (211,700) Bonds payable (370,000) (107,000) Discount on bonds 19,000 Common stock (316,000) (127,000) Retained earnings (441,550 (418,550) Total liabilities and stockholders' equity $ (1,287,550) $ (864,250) $ 0 $ 0 $
