The individual financial statements for Abbey Company and Bellstar Company for the year ending December...

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The individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent interest in Beflstar on January 1,2023, in exchange for vartous considerations totaling $810,000. At the acquisition date, the fair value of the noncontrolling interest was $540,000 and Bellstar's book value was $1,080,000. Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition-date fair value of $270,000. This intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its investment in Bellstar, Abbey sold Bellstar land with a book value of $85,000 on January 2,2023, for $180,000. Bellstar still holds this land at the end of the current year. Bellstar regularly trasfers inventory to Abbey. In 2023 , it shipped inventory costing $208.000 to Abbey at a price of $320,000. During 2024 , intra entity shipments totaled $370,000, although the original cost to Bellstar was only $222,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $45,000 at the end of 2024 . percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $45,000 at the end of 2024. Note: Parentheses indicate a credit balance. Required: a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a bullding on January 2, 2023, with a \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ ABEEY ANO BELLSTAR } \\ \hline \multicolumn{8}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{8}{|c|}{ For the Year Ending December 31, 2024} \\ \hline \multirow[b]{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Abbey }} & \multirow[b]{2}{*}{ Belistar } & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{\begin{tabular}{l} Noncontrolling \\ Interest \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & Debit & Credit & & \\ \hline Sales & 3 & (970,000) & $(670,000)} & & & & \\ \hline Cost of goods sold & & 670,000 & 470,000 & & & & \\ \hline Opotating expenses & & 160,000 & 40,000 & & & & \\ \hline Equity in earnings of Bollstar & & (96,000) & of & & & & \\ \hline Separate compary net income & 5 & (236,000) & 5(160,000) & & & + & \\ \hline \multicolumn{8}{|l|}{ Consolidated net income } \\ \hline \multicolumn{8}{|l|}{ To noncontrolling interest } \\ \hline To Abbey Company & & + & & & & & \\ \hline Retained eamings, Abbey, 1/1 & s & (1,200,000) & & & & & \\ \hline Retained eamings, Boilstar, it & & & (705,000) & & & & \\ \hline Net income & & (235,000) & (160,000) & & & & \\ \hline Dividends declared & & 110,000 & 55,000 & & & & \\ \hline Rotained eamings, 12/31 & 5 & (1,412,000) & \$ (810,000) & & & & \\ \hline Cast: & 5 & 186000 & 80,000 & & & & \\ \hline Accounts recoivatio & 3 & 390,000 & 580,000 & & & & \\ \hline Invontory & & 560,000 & 490,000 & & & & \\ \hline Invosfment in Bodistar & & 990,000 & & & & & \\ \hline \end{tabular} Consolidation Worksheet Entries Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. The individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent interest in Beflstar on January 1,2023, in exchange for vartous considerations totaling $810,000. At the acquisition date, the fair value of the noncontrolling interest was $540,000 and Bellstar's book value was $1,080,000. Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition-date fair value of $270,000. This intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its investment in Bellstar, Abbey sold Bellstar land with a book value of $85,000 on January 2,2023, for $180,000. Bellstar still holds this land at the end of the current year. Bellstar regularly trasfers inventory to Abbey. In 2023 , it shipped inventory costing $208.000 to Abbey at a price of $320,000. During 2024 , intra entity shipments totaled $370,000, although the original cost to Bellstar was only $222,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $45,000 at the end of 2024 . percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $45,000 at the end of 2024. Note: Parentheses indicate a credit balance. Required: a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Bellstar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a bullding on January 2, 2023, with a \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ ABEEY ANO BELLSTAR } \\ \hline \multicolumn{8}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{8}{|c|}{ For the Year Ending December 31, 2024} \\ \hline \multirow[b]{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Abbey }} & \multirow[b]{2}{*}{ Belistar } & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{\begin{tabular}{l} Noncontrolling \\ Interest \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{c} Consolidated \\ Totals \end{tabular}} \\ \hline & & & & Debit & Credit & & \\ \hline Sales & 3 & (970,000) & $(670,000)} & & & & \\ \hline Cost of goods sold & & 670,000 & 470,000 & & & & \\ \hline Opotating expenses & & 160,000 & 40,000 & & & & \\ \hline Equity in earnings of Bollstar & & (96,000) & of & & & & \\ \hline Separate compary net income & 5 & (236,000) & 5(160,000) & & & + & \\ \hline \multicolumn{8}{|l|}{ Consolidated net income } \\ \hline \multicolumn{8}{|l|}{ To noncontrolling interest } \\ \hline To Abbey Company & & + & & & & & \\ \hline Retained eamings, Abbey, 1/1 & s & (1,200,000) & & & & & \\ \hline Retained eamings, Boilstar, it & & & (705,000) & & & & \\ \hline Net income & & (235,000) & (160,000) & & & & \\ \hline Dividends declared & & 110,000 & 55,000 & & & & \\ \hline Rotained eamings, 12/31 & 5 & (1,412,000) & \$ (810,000) & & & & \\ \hline Cast: & 5 & 186000 & 80,000 & & & & \\ \hline Accounts recoivatio & 3 & 390,000 & 580,000 & & & & \\ \hline Invontory & & 560,000 & 490,000 & & & & \\ \hline Invosfment in Bodistar & & 990,000 & & & & & \\ \hline \end{tabular} Consolidation Worksheet Entries Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits

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