Required: a. Prepare a consolidated balance sheet worksheet as of December 31, 20X9

POWDER CORPORATION AND SUBSIDIARY
Consolidated Balance Sheet Worksheet
December 31, 20X9
			Consolidation Entries
	Powder	Solid Co.	DR	CR	Consolidated
Assets
Cash
Accounts receivable
Inventory
Land
Buildings and Equipment
Less: Accumulated Depreciation
Investment in Solid Co.
Deferred Tax Asset
Total Assets
Liabilities & Stockholders' Equity
Accounts payable
Wages Payable
Bonds Payable
Common stock
Retained Earnings
NCI in NA of Solid Co.
Total Liabilities & Equity

b. Prepare a consolidated balance sheet as of December 31, 20X9. (Amounts to be deducted should be indicated with a minus sign.)

POWDER CORPORATION AND SUBSIDIARY
Consolidated Balance Sheet
December 31, 20X9
Assets
Total Assets
Liabilities
Stockholders equity:
Controlling Interest:
Total controlling interest
Total stockholders equity
Total Liabilities and Stockholders' Equity

Powder Corporation acquired 70 percent of Solid Company's stock on December 31, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 30 percent of Solid Company's book value. The two companies' balance sheets on December 31, 20X9, are as follows: Solid Company POWDER CORPORATION AND SOLID COMPANY Balance Sheets December 31, 20x9 Powder Corporation Assets Cash $ 49,400 Accounts Receivable 133,000 Inventory 172,000 Land 92,00 Buildings & Equipment 501,000 Less: Accumulated Depreciation (176,000) Investment in Solid Company Stock 224,680 Total Assets $ 996,080 Liabilities and Equity Accounts Payable $ 78,000 Wages Payable 88,000 Bonds Payable 200,000 Common Stock 99,000 Retained Earnings 531,080 Total Liabilities & Equity $ 996, 080 $ 25,000 44,000 122,000 32,000 301,000 (76,000) $448,000 $ 28,000 38,000 149,000 233,000 $448,000 On December 31, 20X9, Powder holds inventory purchased from Solid for $78,000. Solid's cost of producing the merchandise was $58,000. Solid also had purchased inventory from Powder. Solid's ending inventory contains $93,000 of purchases that had cost Powder $68,000 to produce. On December 30, 20X9, Solid sells equipment to Powder for $96,000. Solid had purchased the equipment for $126,000 several years earlier. At the time of sale to Powder, the equipment had a book value of $50,000. The two companies file separate tax returns and are subject to a 40 percent tax rate. Powder does not record tax expense on its share of Solid's undistributed earnings. Required: a. Prepare a consolidated balance sheet worksheet as of December 31, 20X9. (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.) Powder Corporation acquired 70 percent of Solid Company's stock on December 31, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 30 percent of Solid Company's book value. The two companies' balance sheets on December 31, 20X9, are as follows: Solid Company POWDER CORPORATION AND SOLID COMPANY Balance Sheets December 31, 20x9 Powder Corporation Assets Cash $ 49,400 Accounts Receivable 133,000 Inventory 172,000 Land 92,00 Buildings & Equipment 501,000 Less: Accumulated Depreciation (176,000) Investment in Solid Company Stock 224,680 Total Assets $ 996,080 Liabilities and Equity Accounts Payable $ 78,000 Wages Payable 88,000 Bonds Payable 200,000 Common Stock 99,000 Retained Earnings 531,080 Total Liabilities & Equity $ 996, 080 $ 25,000 44,000 122,000 32,000 301,000 (76,000) $448,000 $ 28,000 38,000 149,000 233,000 $448,000 On December 31, 20X9, Powder holds inventory purchased from Solid for $78,000. Solid's cost of producing the merchandise was $58,000. Solid also had purchased inventory from Powder. Solid's ending inventory contains $93,000 of purchases that had cost Powder $68,000 to produce. On December 30, 20X9, Solid sells equipment to Powder for $96,000. Solid had purchased the equipment for $126,000 several years earlier. At the time of sale to Powder, the equipment had a book value of $50,000. The two companies file separate tax returns and are subject to a 40 percent tax rate. Powder does not record tax expense on its share of Solid's undistributed earnings. Required: a. Prepare a consolidated balance sheet worksheet as of December 31, 20X9. (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.)