Give all consolidating entries on Dec 31.20x8 to prepare consolidated financial statements

Prepare a three part consolidation worksheet

On January 1, 20x8, Pierce Corporation acquired 90 percent of Sharp Company s voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31, 20X9, the trial balances of the two companies are as follows: Current Assets Depreciable Assets Investment in Sharp Corp. Depreciation Expense other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Sharp Pierce Company Debit $225,500 300,000 144,000 30,000 180,000 40,000 Credit $150,000 45,000 75,000 100,000 282,500 253.500 13,500 $919,500 $919,500 Sharp Corporation Debit $145,000 225,000 25,000 85,000 10,000 Credit $100,000 20,000 90,000 75,000 80,000 125,000 $490,000 $490,000