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On January 1, 20X8, P Company acquired 90 percent of Q Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Q Company at that date. The amount of accumulated depreciation to eliminate is $50,000. P uses the equity method in accounting for its ownership of Q. On December 31, 20X8, the trial balances of the two companies are as follows: (At bottom)

Required:

1. Give all consolidating entries required on December 31, 20X8, to prepare consolidated financial statements.
2. Prepare a three-part consolidation worksheet as of December 31, 20X8.

Use Excel formulas to make or evidence each of your calculations of all dollar amounts. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file to complete the assignment.

Prepare and submit one Excel spreadsheet for this assignment. Use the following naming convention for your file: MyNameCTA2Option2.

Thank you!

P Company Q Company Credit Debit Credit Debit Current Assets225,500 145,000 Depreciable 300,000 225,000 Assets Investment in S 144,000 Depreciation Expense 30,000 25,000 Other Expenses 180,000 85,000 Dividends 40,000 10,000 Declared Accumulated $150,000 100,000 Depreciation Current 20,000 45,000 Liabilities Long-Term Debt 75,000 90,000 75,000 Common Stock 100,000 Retained 282,500 80,000 Earnings Sales 253,500 125,000 Income from S 13,500 919,500 $919,500 $ 490,000 $ 490,000

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