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Below is the trial balance data for Poland and Slovenia on December 31, 2023. In addition, Poland owes Slovenia an Accounts Payable of $25,000 and Slovenia owes Poland an Accounts Payable of $45,000.

Poland Slovenia

Debits:

Cash $ 290,000 $ 100,000

Accounts Receivable 210,000 190,000

Inventory 400,000 50,000

Land 300,000 100,000

Buildings & Equipment-Net 1,100,000 330,000

Trademarks 0 40,000

Investment in Slovenia 560,000 0

Cost of Goods Sold 550,000 220,000

Depreciation Expense 130,000 45,000

SG&A Expenses 20,000 35,000

Dividends Declared 100,000 50,000

$3,660,000 $1,160,000

Credits:

Accounts Payable $ 80,000 $ 90,000

Long-Term Liabilities 1,200,000 20,000

Common Stock 1,000,000 400,000

Additional Paid in Capital - 50,000

Retained Earnings, Jan. 1 350,000 150,000

Sales 910,000 450,000

Income from Subsidiary 120,000 0

$3,660,000 $1,160,000

Required:

A. Prepare the journal entries Poland made during 2023 related to its investment in Slovenia.

B. Prepare the consolidation/eliminating entries needed to consolidate the two companies at the end of 2023.

C. Prepare the consolidation working paper for December 31, 2023. Put required CEs/EEs in their proper columns. Use a coding system. Use Figure 3-3 on page 110 as a general guide for the format. MUST use a 6 column format as presented in Figure 3-3. Remember to do the format requirements in the syllabus, such as Dates, Company name (i.e., parent identified), Name of statement, Dollar Signs, Commas, and Underlines.

CHECK FIGURES:

Consolidated Assets = $3,040,000

NCI in Net Income of Slovenia = $30,000

NCI in Net Assets of Slovenia = $140,000

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