Polka Corporation acquired 100 percent of Song Company's voting stock on January 1, 20X4, at underlying book value. Polka uses the equity method in accounting for its ownership of Song. On December 31, 20X4, the trial balances of the two companies are as follows: Song Company Debit Credit $169,000 306,000 13,000 87,000 21,000 Item Current Assets Depreciable Assets Investment in Song Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Song Company Polka Corporation Debit Credit $ 257,000 503,000 249,000 23,000 169,000 55,000 $ 180,000 67,000 81,000 189,000 479,000 219,000 41,000 $1,256,000 $1,256,000 $ 78,000 47,000 101,000 97,000 132,000 141,000 $596,000 $596,000 Required a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Accounts Debit Credit Event 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries ) B > Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Accounts Debit Credit Event 2 Record entry Clear entry view consolidation entries b. Prepare a three-part consolidation worksheet as of December 31, 20X4. (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.) POLKA CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X4 Consolidation Entries Polka Corp. Song Co. DR CR Consolidated Income Statement Sales Less: Depreciation expense Less: Other expenses Income from Song Co. Net income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending balance Balance Sheet Current assets Depreciable assets Less: Accumulated depreciation Investment in Song Co. Total Assets Current liabilities Long-term debt Common stock Retained earnings Total Liabilities & Equity