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Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1 , 208, when the book value of Scissor's net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows: (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare the journal entries on Paper's books for the acquisition of Scissor on January 1, 20X8, as well as any normal equity method entry(ies) related to the investment in Scissor Company during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the initial investment in Scissor Company. Note: Enter debits before credits. Journal entry worksheet Record Paper Co.'s 100\% share of Scissor Co.'s 208 income. Note: Enter debits before credits. Journal entry worksheet Record Paper Co.'s 100\% share of Scissor Co.'s 208 dividend. Note: Enter debits before credits. b. Prepare a consolidation worksheet for 208. (Values in the first two columns (the "parent" and "subsidiary" balances) that are 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.) Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Investment in Scissor Co. Land Buildings \& Equipment Less: Accumulated depreciation \begin{tabular}{|l|l|l|l|l|l|} \hline Total Assets & & & & \\ \hline Liabilities \& Equity & & & & & \\ \hline Accounts payable & & & & \\ \hline Bonds payable & & & & \\ \hline Common stock & & & & \\ \hline Retained earnings & & & & \\ \hline Total Liabilities \& Equity & & & & \\ \hline \end{tabular}

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