PLEASE DO PART B

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Exercise 4-7 On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $361,700. On that date, Sales Company's stockholders' equity consisted of common stock, $93,900; other contributed capital, $37,000; and retained earnings, $148,500. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value. During 2014 Sales Company earned $134,900 and declared and paid a $50,500 dividend. Pert Company used the partial equity method to record its investment in Sales Company. Assume that during 2015 Sales Company earned $202,100 and declared and paid a $50,500 dividend. (a) Your answer is correct. Prepare the investment-related entries on Pert Company's books for 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Investment in Subsidiary 171785 171785 Equity in Subsidiary Inc (To record equity income (loss)) Cash 42925 42925 Investment in Subsidiai (To record dividend income) (b) Prepare the workpaper eliminating entries for a workpaper on December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit (To record equity income (loss) and dividend income) (To eliminate investment in subsidiary and create noncontrolling interest) (To eliminate excess of the book value of equity acquired.) List Of Accounts Exercise 4-6 Accounts Payable Accounts Receivable Accrued Expenses Advance to Subsidiary Advances from Parent Cash Common Stock - Subsidiary Company Contingent Consideration Cost of Goods Sold Deferred Tax Asset Deferred Tax Liability Difference between Implied and Book Value Dividend Income Dividends Declared - Subsidiary Company Dividends Payable Dividends Receivable Equity in Subsidiary Income Equity Income Equity Loss Goodwill Inventory Investment in Subsidiary Land Noncontrolling Interest Note Receivable Notes Payable Operating Expenses Other Contributed Capital - Parent Company Other Contributed Capital - Subsidiary Company Other Expenses Other Liabilities Plant and Equipment Retained Earnings - Parent Company Retained Earnings - Subsidiary Company Sales Selling, General and Administration Expenses Tax Expense Treasury Stock