prepare the journal entries on paper's books for acquisition of Scissor on January 1 20X8 as well as any normal equity method entries related to the investment in Scissor company during 20X8

P2-23 Consolidated Worksheet at End of the First Year of Ownership (Equity Method) LO 2-3, 2-5, 2-6 Paper Company acquired 100 percent of Scissor Company's outstanding common stock for $370,000 on January 1, 20X8, 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: Scissor Company Debit Credit $ 46,000 60,000 120,000 125,000 Cash Accounts Receivable Inventory Investment in Scissor Company Land Buildings & Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Scissor Company Total Paper Company Debit Credit $ 122,000 140,000 190,000 438,000 250,000 875,000 250,000 65,000 280,000 80,000 $ 565,000 77,000 250,000 625,000 280,000 800,000 93,000 $2,690,000 $2,690,000 250,000 155,000 12,000 50,000 25,000 $ 36,000 27,000 100,000 250,000 120,000 310,000 $843,000 $843,000 (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.) View transaction list View journal entry worksheet No Debit Credit Event 1 General Journal Investment in Scissor Company Cash 370,000 370,000