Answer:The question is incomplete; see the full question below:
Trim Corporation purchased 100 percent of Round Corporation's voting common stock on January 1, 20X2, at a cost of $405,000. At that time, the book values and fair values for Round's assets and liabilities were identical. Round announced the following summarized balance sheet information:
Assets $ 715,000 Accounts Payable $ 102,000
Bonds Payable 208,000
Common Stock 120,000
Retained Earnings 285,000
Total $ 715,000 Total $ 715,000
Round reported net income of $89,000 for 20X2 and paid dividends totaling $30,000.
Prepare the required consolidation entries for December 31, 20X2, in order to compile consolidated financial statements. (If a transaction/event does not require an entry, please select "No journal entry required" in the first account field.)
Explanation:
I have created the requisite journal entries to prepare consolidated accounts.
Refer to the necessary journals in the attached excel document.
