On January 2 2011 Phillips Company purchased 80 of Sanchez
On January 2, 2011, Phillips Company purchased 80% of Sanchez Company and 90% of Thomas Company for $225,000 and $168,000, respectively. Immediately before the acquisitions, the balance sheets of the three companies were as follows:


The note receivable and interest receivable of Sanchez relate to a loan made to
Thomas Company on October 1, 2010. Thomas failed to record the accrued interest expense on the note.

Required:
Prepare a consolidated balance sheet workpaper as of January 2, 2011. Any difference between book value and the value implied by the purchase price relates to subsidiaryland.
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