See attached Excel File
Comprehensive Problem Comprehensive Problem Planet Corporation acquired 80 percent ownership of Saturn Products Company on January 1, 2021, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Saturn reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Planet has used the equity method in accounting for its investment in Saturn. Trial balance data for the two companies on December 31, 2025, are as follows: December 31, 2025 Planet CorpSaturn Products Trial Balance ItemDebitCreditDebitCredit 1Cash and Receivables$ 81,000- 065,000- 0 2Inventory260,000- 090,000- 0 3Land80,000- 080,000- 0 4Buildings and Equipment500,000- 0150,000- 0 5Investment in Saturn Products Company188,000- 0- 0- 0 6Cost of Goods Sold120,000- 050,000- 0 7Depreciation Expense25,000- 015,000- 0 8Inventory Losses15,000- 05,000- 0 9Dividends Declared30,000- 010,000- 0 10Accumulated Depreciation- 0205,000- 0105,000 11Accounts Payable- 060,000- 020,000 12Notes Payable- 0200,000- 050,000 13Common Stock- 0300,000- 0100,000 14Retained Earnings- 0314,000- 090,000 15Sales- 0200,000- 0100,000 16Income from Saturn Products Company- 020,000- 0- 0 17Total$ 1,299,0001,299,000465,000465,000 Additional Information 1On the date of combination, the fair value of Saturn’s buildings and equipment was $50,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2Planet sold inventory with a cost of $1,000 to Saturn for $1,100 during 2025. The 2025 ending inventory of Saturn included goods purchased from Planet for $660. 3There was $10,000 of intercorporate receivables and payables at the end of 20X5. 4On July 1, 2025, Planet sold land to Saturn for $15,000. The initial cost of the land to Planet was $5,000. Required: a.Prepare all journal entries that Planet recorded during 20X5 related to its investment in Saturn. This includes journal entries to record equity method income, dividends, the amortization of excess acquisition price, and those associated with the additional information provided above. b.Prepare all consolidation entries needed to prepare consolidated statements for 20X5. This includes the basic consolidation entry, the amortized excess value reclassification, the differential reclassificaiton entry, intercompany accounts, and any other entries associated with the additional information above. c.Prepare a three part consolidation worksheet as of December 31, 2025. for the year ended December 31, 2025. (1) Journal Entries Some notes: a)If you'd like to add descriptions below the transactions for your own sake, you are welcome to. However, they are not required. Nor will they be graded. b)If you are unsure of how to do a journal entry, try your best and be sure to carry it through to the end. c)Note the date of the acquisition versus the date of the reporting period before beginning (2021 versus 2025). General Journal AccountDebitCredit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 (2) Consolidation Entries AccountsDebitCredit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 (3) Consolidation Wksht, BS, IS Some notes: a)Some of the income statement lines have been left blank for you to fill in. The remainder of the framework has been set up for you. b)Use proper cell referencing where applicable. This will make your life easier, and it will allow me to see where your numbers came from for partial credit where applicable. c)Neatness in reporting is critical. Assume this would be a submission to your boss at work, and you will be rewarded for it. Submit something with little effort, and you will see the opposite. If there is a calculation I need to be made aware of, feel free to add footnotes below this schedule. However, if you feel that will not be necessary if you cell reference properly, that is fine. In other words, you will not be penialized for showing too much work, but be sure to draw a line as to how much work shown is too much. I don’t need redundancy. Planet Corp and Subsidiary Worksheet for Consolidated Financial Statements December 31, 2025 Consolidation Entries Planet CorpSaturn ProductsDebitCreditConsolidated 1Income Statement 2Sales 3 4 5 6 7Income from Saturn Products 8Consolidated Net Income 9NCI in Net Income 10Controlling Interest in Net Income 11 12Statement of Retained Earnings 13Beginning Balance 14Net Income 15Less: Dividends declared 16Ending Balance 17 18Balance Sheet 19Cash and receivables 20Inventory 21Land 22Buildings and Equipment 23Less: Accumulated Depreciation 24Investment in Saturn Products 25Total Assets 26 27Accounts Payable 28Notes Payable 29Common Stock 30Retained Earnings 31NCI in NA of Saturn Products Total Liabilities and Equity