Phelps Corporation owns all of the common stock of Stern Company. Each company maintains its own accounting records and prepares separate financial statements. Balance sheets for each company as of December 31, 20Y8, are as follows:

a. Prepare a spreadsheet for consolidating the balance sheets of Phelps Corporation and Stern Company.
b. Prepare a December 31, 20Y8, consolidated balance for Phelps Corporation and Subsidiary.
c. Assume that the accounts receivable of Phelps Corporation include $3,000 that is due from Stern Company. What would the consolidated balance sheet report for accounts receivable and accounts payable?

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1 2 3 4 A F Phelps Corporation and Subsidiary Balance Sheets December 31, 20Y8 5 6 Cash 7 Accounts Receivable 8 Inventory 9 Investment in Stern Company 10 Other assets 11 Total assets 12 13 14 Accounts Payable 15 Common Stock 16 Retained Earnings 17 Total liabilities and stockholders' equity Assets Liabilities and Stockholders' Equity Phelps Corporation 30,500 29,100 75,750 92,500 300,000 527,850 75,000 300,000 152,850 527,850 G Stern Company 20,500 22,500 35,250 44,250 122,500 30,000 50,000 42,500 122,500