On January 2, 2024, 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, 2023. Thomas failed to record the accrued interest expense on the note.

Required:
Prepare a consolidated balance sheet workpaper as of January 2, 2024. Any difference between book value and the value implied by the purchase price relates to subsidiary land.

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Cash Accounts receivable Note receivable Interest receivable Inventory Equipment Land Total Accounts payable Note payable Common stock Other contributed capital Retained earnings Total Phillips $400,000 28,000 -0- 120,000 60,000 180,000 $788,000 $ 28,000 -0 300,000 300,000 160,000 $788,000 Sanchez $ 43,700 24,000 10,000 300 96,000 40,000 80,000 $294,000 $ 20,000 -0- 120,000 90,000 64,000 $294,000 Thomas $ 20,000 20,000 43,000 30,000 70,000 $183,000 $ 18,000 10,000 75,000 40,000 40,000 $183,000