Prepare the worksheet for consolidation purposes and the related eliminating entries on January 1, 20x9 and December 31, 20x19

On January 5, 20x9, Parent Company acquired 80% of the outstanding shares of Subsidiary Company for P350,000. The financial statements of Parent and Subsidiary Company before the acquisition follow: Parent Company Subsidiary Company Parent Value Cash Inventory PPE Liabilities Outstanding Shares Retained earnings 700,000 300,000 1,000,000 500,000 1,000,000 500,000 100,000 50,000 350,000 200,000 200,000 100,000 100,000 55,000 365,000 200,000 Financial statements for Parent and Subsidiary for the year ended December 31, 2x19 follow: INCOME AND RETAINED EARNINGS Parent Company Subsidiary Company 550,000 Sales Dividend income Cost of sales Operating expenses Net income Retained earnings, Jan 1, 2019 Dividends declared Retained earnings end 800,000 40,000 (480,000) (60,000) 300,000 500,000 (100,000) 700,000 (250,000) (150,000) 150,000 100,000 (50,000) 200,000 BALANCE SHEET Cash Receivables Inventory Investment in Subsidiary PPE Total 125,000 30,000 45,000 300,000 100,000 650,000 350,000 900,000 2,300,000 350,000 550,000 Liabilities Outstanding shares Retained earnings Total 600,000 1,000,000 700,000 2,300,000 150,000 200,000 200,000 550,000 Additional Information: The undervalued PPE of Subsidiary on the date of acquisition has a remaining useful life of 5- years. Subsidiary Company owes Parent Company P5,000 on December 31, 2x19