Journal entry worksheet

A

B

C

D

$E$

Record the excess value $($differential$)$ reclassification entry.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$Accounts,Debit,Credit$],[2,,,],[,,,],[,,,],[,,,],[,,,]]$ Journal entry worksheet

A

B

C

D

$E$

Record the entry to eliminate the intercompany accounts for Bonds Payable.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$Accounts,Debit,Credit$],[3,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$ Journal entry worksheet

A

B

C

D

E

Record the entry to eliminate the remaining intercompany accounts.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$Accounts,Debit,Credit$],[4,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$Journal entry worksheet

A

B

C

D E

Record the optional accumulated depreciation consolidation entry.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$Accounts,Debit,Credit$],[5,,,],[,,,],[,,,],[,,,]]$Pretzel Corporation acquired $100$ percent of Stick Company's outstanding shares on January $1,20$X$7.$ Balance sheet data for the two

companies immediately after the purchase follow:

As indicated in the parent company balance sheet, Pretzel purchased $$62,000$ of Stick's bonds from the subsidiary at par value

immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes

the parent $$10,000.$ On the date of combination, the book values and fair values of Stick's assets and liabilities were the same.

Required:

a$.$ Prepare all consolidation entries needed to prepare a consolidated balance sheet for January $1,20$X$7.$

b$.$ Complete a consolidated balance sheet worksheet.

c$.$ Prepare a consolidated balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare all consolidation entries needed to prepare a consolidated balance sheet for January $1,20$X$7.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the basic consolidation entry.

Note: Enter debits before credits.