The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percentowned subsidiary Hingle Company contained

The December 31, 20X8, balance sheets for Doorst Corporation and its 70 percent—owned subsidiary Hingle Company contained the following summarized amounts:

Doorst acquired the shares of Hingle Company on January 1, 20X7. On December 31, 20X8, assume Doorst sold inventory to Hingle during 20X8 for $100,000 and Hingle sold inventory to Doorst for $300,000. Doorst’s balance sheet contains inventory items purchased from Hingle for $95,000. The items cost Hingle $55,000 to produce. In addition, Hingle’s inventory contains goods it purchased from Doorst for $25,000 that Doorst had produced for $15,000. Assume Hingle reported net income of $70,000 and dividends of $14,000.

Required
a. Prepare all elimination entries needed to complete a consolidated balance sheet worksheet as of December 31, 20X8.
b. Prepare a consolidated balance sheet worksheet as of December 31,20X8.

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DOORST CORPORATION AND HINGLE COMPANY Balance Sheets December 31, 20X8 Doorst Corporation Company Hingle Cash & Receivables Inventory Buildings & Equipment (net) Investment in Hingle Company Stock Total Assets 98,000 150,000 310,000 242,000 $800,000 $ 40,000 100,000 280,000 $420,000 Accounts Payable Common Stock Retained Earnings Total Liabilities & Equity 70,000 200,000 530,000 $800,000 20,000 150,000 250,000 $420,000