Assume that a parent company acquires a 70% interest in a subsidiary for a purchase price of $1,078,000. The excess of the total fair value of the controlling and non-controlling interests over the book value of the subsidiary?s stockholders? equity is assigned to a building (in PPE-net) that is worth $100,000 more than its book value, an unrecorded patent that the parent valued at $200,000, and goodwill of $300,000. Goodwill is assigned proportionally to the controlling and non-controlling interests. Using the data below, you are to complete the consolidation worksheet by:1. Entering the consolidation entries in the appropriate columns for the elimination entries (E), and the addition of the AAP amounts (A).2. Preparing the consolidated balance sheet as it would appear after acquisition. Parent Subsidiary Dr Cr ConsolidatedCash 920,000 215,000 Accounts receivable 782,000 330,000 Inventory 1,100,000 425,000 Equity investment 1,078,000 PPE, net 5,400,000 800,000 Patent Goodwill Total assets 9,280,000 1,770,000 Current liabilities 810,000 330,000 Long-term liabilities 4,000,000 500,000 Common stock 920,000 90,000 Additional paid-in capital 700,000 120,000 Retained earnings 2,850,000 730,000 Noncontrolling interest Total liabilities and equity 9,280,000 1,770,000

The starr theater, owned by meg vargo, will begin operations in march. the starr will be unique in that it will show only triple features of sequential theme movies. as of march 1, the ledger of starr showed: cash $3,150, land $22,000, buildings (concession stand, projection room, ticket booth, and screen) $10,000, equipment $10,000, accounts payable $7,300, and owner’s capital $37,850. during the month of march, the following events and transactions occurred. mar. 2 rented the three indiana jones movies to be shown for the first 3 weeks of march. the film rental was $3,600; $1,600 was paid in cash and $2,000 will be paid on march 10.3 ordered the lord of the rings movies to be shown the last 10 days of march. it will cost $200 per night.9 received $4,500 cash from admissions.10 paid balance due on indiana jones movies rental and $2,200 on march 1 accounts payable.11 starr theater contracted with adam ladd to operate the concession stand. ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand.12 paid advertising expenses $900.20 received $5,100 cash from customers for admissions.20 received the lord of the rings movies and paid the rental fee of $2,000.31 paid salaries of $2,900.31 received statement from adam ladd showing gross receipts from concessions of $6,000 and the balance due to starr theater of $900 ($6,000 × 15%) for march. ladd paid one-half the balance due and will remit the remainder on april 5.31 received $9,200 cash from customers for admissions.1.) enter the beginning balances in the ledger.2.) journalize the march transactions. starr records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense. (credit account titles are automatically indented when the amount is entered. do not indent manually. record journal entries in the order presented in the problem. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)3.) post the march journal entries to the ledger. (post entries in the order of journal entries presented in the previous question.)