Pretzel Corporation acquired 100 percent of Stick Company's outstanding shares on January 1, 20x7. Balance sheet data for the two companies immediately after the purchase follow: $ Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Investment in Stick Company Investment in Stick Company Bonds Total Assets Pretzel Corporation 75,000 92,000 91,000 412,000 (148,000) 312,000 55,000 $ 889,000 Stick Company $ 32,000 52,000 87,000 290,000 (85,000) $376,000 $ 55,000 184,000 285,000 Accounts Payable Bonds Payable Common Stock Capital in Excess of Par Retained Earnings Total Liabilities & Equities $ 27,000 102,000 153,000 143,000 (49,000) $376,000 365,000 $ 889,000 As indicated in the parent company balance sheet, Pretzel purchased $55,000 of Stick's 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 $10,000. On the date of combination, the book values and fair values of Stick's 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.) X: A Record the basic consolidation entry. B Record the excess value (differential) reclassification entry. Record the entry to eliminate the intercompany accounts for Bonds Payable. D Record the entry to eliminate the remaining intercompany accounts. Credi E Record the optional accumulated depreciation consolidation entry. Note : - journal entry has been entered Consolidation Worksheet Entries