Refer to the information given in Problems P12-23 and P12-27 for Alamo and its subsidiary, Western Ranching. Assume that the U.S. dollar is the functional currency and that Alamo uses the fully adjusted equity method for accounting for its investment in Western Ranching. A December 31, 20X3, trial balance for Alamo follows. Use this remeasured trial balance for completing this problem.

In P12-23 and P12-27
Additional Information
1. Western Ranching uses average cost for cost of goods sold. Inventory increased by A $20,000 during the year. Purchases were made uniformly during 20X3. The ending inventory was acquired at the average exchange rate for the year.
2. Plant and equipment were acquired as follows:
Date Cost
January 20X1 ........A$180,000
January 1, 20X3....... 60,000

3. Plant and equipment are depreciated using the straight-line method and a 10-year life with no residual value.
4. The payable to Alamo is in Australian dollars. Alamo’s books show a receivable from Western Ranching of $6,480.
5. The 10-year bonds were issued on July 1, 20X3, for A$106,000. The premium is amortized on a straight-line basis. The interest is paid on April 1 and October 1.
6. The dividends were declared and paid on April 1.
7. Exchange rates were as follows:
A$ $
January 20X1...... 1 = 0.93
August 20X1 .......1 = 0.88
January 1, 20X3 .....1 = 0.70
April 1, 20X3 .......1 = 0.67
July 1, 20X3 .........1 = 0.64
December 31, 20X3 ......1 = 0.60
20X3 average .......1 = 0.65


Required
a. Prepare a set of elimination entries, in general journal form, for the entries required to prepare a three-part consolidation worksheet as of December 31, 20X3.
b. Prepare a three-part consolidation worksheet as of December 31,20X3.

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Item Debit Credit Cash Accounts Receivable (net) Receivable from Western Ranching Inventory Plant & Equipment Investment in Western Ranching Cost of Goods Sold Depreciation Expense Operating Expenses Interest Expense Dividends Declared $ 38,000 140,000 6,480 128,000 500,000 178,544 600,000 28,000 204,000 2,000 50,000 Item Debit Credit 90,000 60,000 2,000 500,000 179,656 1,000,000 43,368 1,875,024 Accumulated Depreciation Accounts Payable Interest Payable Retained Earnings, January 1, 20X3 Sales Income from Subsidiary $1,875.024