Proud Corporation acquired 80 percent of Spirited Companys voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited during 20X3. On December 31, 20X3, the trial balances of the two companies are as follows:

		Proud Corporation								Spirited Company
Item	Debit				Credit				Debit					Credit
Current Assets		$	178,000							$	116,000
Depreciable Assets			501,000								317,000
Investment in Spirited Company			113,600
Depreciation Expense			24,000								14,000
Other Expenses			95,000								72,000
Dividends Declared			51,000								18,000
Accumulated Depreciation						$	171,000							$	70,000
Current Liabilities							40,000								30,000
Long-Term Debt							100,600								191,000
Common Stock							191,000								85,000
Retained Earnings							221,000								35,000
Sales							207,000								126,000
Income from Spirited Company							32,000
		$	962,600			$	962,600			$	537,000			$	537,000

Required: a. Prepare all consolidation entries required as of December 31, 20X3, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a three-part consolidation worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to 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.)

Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1,203, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited during 203. On December 31, 203, the trial balances of the two companies are as follows: Required: a. Prepare all consolidation entries required as of December 31,203, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Note: Enter debits before credits. Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1,203, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated ownership of Spirited during 203. On December 31,203, the trial balances of the two companies are as follows: Required: a. Prepare all consolidation entries required as of December 31,203, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. b. Prepare a three-part consolidation worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to 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.) Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1,203, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited during 203. On December 31, 203, the trial balances of the two companies are as follows: Required: a. Prepare all consolidation entries required as of December 31,203, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Note: Enter debits before credits. Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1,203, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated ownership of Spirited during 203. On December 31,203, the trial balances of the two companies are as follows: Required: a. Prepare all consolidation entries required as of December 31,203, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. b. Prepare a three-part consolidation worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to 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.)