Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $112,700. At that date, the noncontrolling Interest had a fair value of $48,300 and Soda reported $71,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $28,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $31,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Item Cash & Accounts Receivable Inventory Pop Corporation Debit Credit $ 16,400 166,888 81,000 350,000 Soda Company Debit $ 22,600 36,000 41,000 261,000 Credit Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premdum Common Stock Retained Earnings Sales Other Income Income from Soda Company 117,200 187,688 80,800 20,000 15,000 17,000 6,200 31,000 16,800 $141,888 $ 85,000 93,400 36,880 219,250 94,000 1,680 121,888 71,888 128,988 61,888 261,000 130,000 10,600 10,458 $985,680 $985,688 $478,600 $478,600 On December 31, 202, Soda purchased Inventory for $31,500 and sold it to Pop for $45,000. Pop resold $30,000 of the Inventory (I.e., $30,000 of the $45,000 acquired from Soda) during 20X3 and had the remaining balance In Inventory at December 31, 20X3. During 203, Soda sold Inventory purchased for $56,000 to Pop for $80,000, and Pop resold all but $25,000 of its purchase. On March 10, 20X3, Pop sold Inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,800 of the Inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition. Required: a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) Consolidation Worksheet Entries < A B C D E F G Record the basic consolidation entry. Note: Enter debits before credits. Entry 1 Accounts Debit Credit Record entry Clear entry view consolidation entries 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.) Income Statement Sales Other Income Less: COGS Less: Depreciation Expense Less: Interest Expense Less: Amortization Expense Income from Soda 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 Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Soda Company Patents Total Assets Accounts Payable Bonds Payable Bonds Premium Common Stock Retained Earnings NCI in NA of Soda Company Total Liabilities & Equity POP CORPORATION & SUBSIDIARY Consolidated Financial Statement Worksheet For 20X3 Consolidation Entries Pop Corp. Soda Co. DR CR Consolidated