PROBLEM 3-3 Intercompany Bond Holdings at Par, 90% Owned Subsidiary LOS Log Balance sheets for P Company and S Company on August 1, 2014, are as follows: P Company S Company Cash $ 165,500 $106,000 Receivables 366,000 126,000 Inventory 261,000 108,000 Investment in bonds 306,000 -0- Investment in S Company stock 586,500 Plant and equipment (net) 573,000 320,000 Land 200,000 300,000 Total $2,458,000 $960,000 Accounts payable $ 174,000 $ 58,000 Accrued expenses 32,400 26,000 Bonds payable, 8% -0- 200,000 Common stock 1,500,000 460,000 Other contributed capital 260,000 60,000 Retained earnings 491,600 156,000 Total $2,458,000 $960,000 Required: Prepare a workpaper for a consolidated balance sheet for P Company and its subsidiary on August 1, 2014, taking into consideration the following: 1. P Company acquired 90% of the outstanding common stock of S Company on August 1, 2014, for a cash payment of $586,500