On December 31 200X P Corporation paid $300000 cash for 80% of thecommon stock o

On December 31 200X P Corporation paid $300000 cash for 80% of thecommon stock of S Company which becomes a subsidiary. Followinginformation is shown prior to the acquisition being recorded:P CompanyAssets Liabilities and EquityCash 580000 Liabilities 90000Inventories 60000Plant 340000 Common Stock $5pv 100000Paid in Capital 200000Retained Earnings 590000Total 980000 Total 980000S CompanyAssets Liabilities and EquityInventories 20000 Liabilities 30000Other assets 40000 LongTerm Debt 50000Plant 140000 Common Stock $10pv 40000Paid in Capital 20000Retained Earnings 60000Total 200000 Total 200000Smarket valuesare:Plant $250000 Inventory $50000 1. Prepare the entries in journal format to record the acquisitionand post tothe generaledger accounts. 2. Prepare a consolidation workpaper. 3. Prepare consolidatedbalance sheet.