Pretzel Corporation acquired 100 percent of Stick Companys outstanding shares on January 1, 20X7. Balance sheet data for the two companies immediately after the purchase follow:

	Pretzel Corporation				Stick Company
Cash	$	82,000			$	26,000
Accounts Receivable		104,000				64,000
Inventory		94,000				90,000
Buildings & Equipment		406,000				281,000
Less: Accumulated Depreciation		(140,000	)			(84,000	)
Investment in Stick Company		314,000
Investment in Stick Company Bonds		70,000
Total Assets	$	930,000			$	377,000
Accounts Payable	$	70,000			$	22,000
Bonds Payable		180,000				110,000
Common Stock		293,000				151,000
Capital in Excess of Par						141,000
Retained Earnings		387,000				(47,000	)
Total Liabilities & Equities	$	930,000			$	377,000

As indicated in the parent company balance sheet, Pretzel purchased $70,000 of Sticks bonds from the subsidiary at par value immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent $8,000. On the date of combination, the book values and fair values of Sticks assets and liabilities were the same. Required: a. Prepare all consolidation entries needed to prepare a consolidated balance sheet for January 1, 20X7. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Complete a consolidated balance sheet worksheet. (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.)

c. Prepare a consolidated balance sheet. (Amounts to be deducted should be entered with a minus sign.)

Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries PRETZEL CORPORATION AND SUBSIDIARY Consolidated Balance Sheet Worksheet January 1, 20X7 Consolidation Entries Pretzel Corp. Stick Co. DR CR Consolidated Assets Cash Accounts receivable Inventory Buildings and equipment Less: Accumulated depreciation Investment in Stick Company Investment in Stick Company bonds Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Capital in excess of par Retained earnings Total Liabilities & Equity PRETZEL CORPORATION AND SUBSIDIARY Consolidated Balance Sheet January 1, 20X7 Assets Cash Accounts receivable Inventory Buildings and equipment Accumulated depreciation Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings Total Liabilities & Stockholders' Equity