Question:

1. prepare entry *G
2. preapre entry *S
3. prepare entry *A
4. Prepare entry *I

Problem 5-35 (Algo) (LO 5-2, 5-3, 5-4, 5-5, 5-7) On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $824,000. The falr value of the noncontrolling Interest at the acquisition date was $206,000. Young reported stockholders' equlty accounts on that date as follows: In establishing the acquisition value, Monica appraised Young's assets and ascertalned that the accounting records undervalued a bullding (with a five-year remalnIng Ilfe) by $70,000. Any remaining excess acquisition-date falr value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica Inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the perlod Immedlately following. Transfers for the three years after this business combination was created amounted to the following: In addition, Monica sold Young several pleces of fully depreclated equipment on January 1, 2020, for $50,000. The equipment had originally cost Monica $78,000. Young plans to depreclate these assets over a 5-year perlod. In 2021, Young earns a net Income of $280,000 and declares and pays $95,000 In cash dividends. These figures Increase the subsidlary's Retained Earnings to a $880,000 balance at the end of 2021 . Monica employs the equity method of accounting. Hence, It reports $201,360 Investment Income for 2021 with an Investment account balance of $956,720. Prepare the worksheet entrles required for the consolidation of Monica Company and Young Company. (If no entry is requlred for a transactlon/event, select "No Journal Entry Requlred" In the flirst account fleld.)