Consolidated Worksheet at End of the First Year of Ownership (Equity Method)...

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

a. Prepare any equity method entry(ies) related to the investment in Scissor Company during 20X8.

b. Prepare a consolidation worksheet for 20X8 in good form.