Sale of Subsidiary Share Penn Corporation purchased 80 percent ownership of ENC Company on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of ENC. On January 1, 20X4, Pennsold 2.000 shares of ENC's stock for $60,000 to American School Products and recorded a $10.000 gain. Trial balances for the companies on December 31, 20X4. contain the following data: Penn Corporation ENC Company Debit | Credit Debit Credit Cash Accounts Receivable Inventory $ 30,000 $ 170,000 50,000 Buildings and Equipment Investment in ENC Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($10 par) Additional Paid-in Capital Retained Earnings Sales Gain on Sale of ENC Company Stock Income from ENC 10,000 18.000 $1.298,000 $1.298,000 5565,000 $585,000 ENC's net income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20X4. Penn uses the basic equity method in accounting for its investment in ENC Required a. Prepare the elimination entries needed to complete a full consolidation worksheet for 20X4. b. Prepare a consolidation worksheet for 20x4. Sale of Subsidiary Share Penn Corporation purchased 80 percent ownership of ENC Company on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of ENC. On January 1, 20X4, Pennsold 2.000 shares of ENC's stock for $60,000 to American School Products and recorded a $10.000 gain. Trial balances for the companies on December 31, 20X4. contain the following data: Penn Corporation ENC Company Debit | Credit Debit Credit Cash Accounts Receivable Inventory $ 30,000 $ 170,000 50,000 Buildings and Equipment Investment in ENC Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($10 par) Additional Paid-in Capital Retained Earnings Sales Gain on Sale of ENC Company Stock Income from ENC 10,000 18.000 $1.298,000 $1.298,000 5565,000 $585,000 ENC's net income was earned evenly throughout the year. Both companies declared and paid their dividends on December 31, 20X4. Penn uses the basic equity method in accounting for its investment in ENC Required a. Prepare the elimination entries needed to complete a full consolidation worksheet for 20X4. b. Prepare a consolidation worksheet for 20x4
