Consolidated Worksheet at End of the First Year of Ownership (Equity Method) Paper Company acquired 80 percent of Scissor Company’s outstanding common stock for $296,000 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: Required Paper Company Scissor Company Debit Credit 46,000 60,000 Debit 191,000 140,000 Credit Cash Accounts Receivable (continued) Chapter 3 The Reporting Entity and the Consolidation of Less-than-Wholly-Owned Subsidiaries with No Differential 141 Inventory Investment in Scissor Stock 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 190,000 350,400 250,000 875,000 250,000 65,000 280,000 80,000 120,000 0 125,000 250,000 155,000 12,000 50,000 25,000 843,000 Total 2,671,400 Required 565,000 77,000 250,000 625,000 280,000 800,000 74,400 2,671,400 36,000 27,000 100,000 250,000 120,000 310,000 0 843,000 LO 3-4, 3-5 P3-31 a. Prepareanyequity-methodentry(ies)20 X8. b. Prepare a consolidation worksheet for 20X8 in good form.