Proud Corporation acquired 80 percent of Spirited

Proud Corporation acquired 80 percent of Spirited Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $48,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows:

Proud CorporationSpirited Company
ItemDebitCreditDebitCredit
Current Assets$235,000$154,000
Depreciable Assets502,000315,000
Investment in Spirited Company121,440
Depreciation Expense22,00012,000
Other Expenses143,00088,000
Dividends Declared52,00022,200
Accumulated Depreciation$195,000$72,000
Current Liabilities68,00048,000
Long-Term Debt101,240197,200
Common Stock181,00080,000
Retained Earnings265,00050,000
Sales230,000144,000
Income from Spirited Company35,200
$1,075,440$1,075,440$591,200$591,200


Required:
a. Prepare all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Accounts Debit Credit Common stock Retained earnings Income from Spirited Company NCI in NI of Spirited Company Dividends dec


b. Prepare a three-part consolidation worksheet as of December 31, 20X4. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

December 31, 20X4 Consolidation Entries Spirited Co. Proud CR DR Consolidated Corp. Income Statement Sales Less: Depreciation

Please help me complete the figures in part A, and the consolidation worksheet.