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Post Delivery Service acquired at book value 80 percent of the voting shares of Script...

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Accounting

Post Delivery Service acquired at book value 80 percent of the voting shares of Script Real Estate Company. On that, date, the fair value of the noncontrolling interest was equal to 20 percent of Script's book value. Script Real Estate reported common stock of $340,000 and retained earnings of $85,000. During 203, Post Delivery provided courier services for Script Real Estate in the amount of $23,000. Also during 203, Script Real Estate purchased land for $5,000. It sold the land to Post Delivery Service for $28,000 so that Post Delivery could build a new transportation center. Post Delivery reported $52,000 of operating income from its delivery operations in 20X3. Script Real Estate reported net income of $69,000 and paid dividends of $8,500 in 203.
Required:
a. Compute consolidated net income for 203.
Consolidated net income
b. Prepare all journal entries recorded by Post Delivery Service related to its investment in Script Real Estate assuming Post fuses the fully adjusted equity method in accounting for the investment.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entrv worksheet
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