Required B

Prepare a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny.

Note: Values in the first two columns $($the "parent" and "subsidiary" balances$)$ that are to be deducted should be indicated with a mir all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit e amount and enter this amount in the credit column of the worksheet.

PENNY MANUFACTURING COMPANY AND SUBSIDIARY

Consolidated Balance Sheet Worksheet

$\backslash$table$[[,$January $1,20$X$1,]]$ Record the basic consolidation entry.

Note: Enter debits before credits. Penny Manufacturing Company acquired $75$ percent of Saul Corporation stock at underlying book value. At the date of acquisition, the

fair value of the noncontrolling interest was equal to $25$ percent of Saul's book value. The balance sheets of the two companies for

January $1,20$X$1,$ are as follows:

On January $2,20$X$1,$ Penny purchased an additional $2,500$ shares of common stock directly from Saul for $$150,000.$

Required:

a$.$ Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet immediately following the issuance of

additional shares to Penny.

b$.$ Prepare a consolidated balance sheet worksheet immediately following the issuance of additional shares to Penny.