Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000....

Item	Blank Corporation			Faith Corporation
Assets
Cash		$	65,000		$	18,000
Accounts Receivable			87,000			37,000
Inventory			110,000			60,000
Buildings & Equipment (net)			220,000			150,000
Investment in Faith Corporation Stock			150,000

Total Assets		$	632,000		$	265,000

Liabilities and Stockholders’ Equity
Accounts Payable		$	92,000		$	35,000
Notes Payable			150,000			80,000
Common Stock			100,000			60,000
Retained Earnings			290,000			90,000

Total Liabilities & Stockholders’ Equity		$	632,000		$	265,000

At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $30,000.

Required:

a.	Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

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ekkarill92 answered 1 year ago

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