On February 1, 2011, Punto Company purchased 95% of the outstanding common stock of Sara Company and 85% of the outstanding common stock of Rob Company. Immediately before the two acquisitions, balance sheets of the three companies were as follows:

The following additional information is relevant.
1. One week before the acquisitions, Punto Company had advanced $10,000 to Sara Com pany and $5,000 to Rob Company. Sara Company recorded an increase to Accounts Payable for its advance, but Rob Company had not recorded the transaction.
2. On the date of acquisition, Punto Company owed Sara Company $12,000 for purchases on ac count, and Rob Company owed Punto Company $3,000 and Sara Company $6,000 for such purchases. The goods purchased had all been sold to outside parties prior to acquisition.
3. Punto Company exchanged 13,400 shares of its common stock with a fair value of $12 per share for 95% of the outstanding common stock of Sara Company. In addition, stock is sue fees of $4,000 were paid in cash. The acquisition was accounted for as a purchase.
4. Punto Company paid $50,000 cash for the 85% interest in Rob Company.
5. Three thousand dollars of Sara Company's notes payable and $9,500 of Rob Company's notes payable were payable to Punto Company.
6. Assume that for Sara, any difference between book value and the value implied by the purchase price relates to subsidiary land. However, for Rob, assume that any excess of book value over the value implied by the purchase price is due to overvalued buildings.

Required:
A. Give the book entries to record the two acquisitions in the accounts of Punto Company.
B. Prepare a consolidated balance sheet workpaper immediately after acquisition.
C. Prepare a consolidated balance sheet at the date of acquisition for Punto Company and itssubsidiaries.

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Punto Sara Rob $165,000 85,000 18,000 106,000 13,500 10,000 5,000 248,000 100,000 35,000 $735,500 45,000 35,000 $17,000 26,000 Cash Accounts receivable Notes receivable Merchandise inventory Prepaid insurance Advances to Sara Company Advances to Rob Company Land Buildings (net) Equipment (net) 35,500 2,500 14,000 500 43,000 27,000 10,000 $198,000 15,000 16,000 2,500 $91,000 Total 25,500 30,000 20,000 10,000 6,000 $10,500 Accounts payable Income taxes payable Notes payable Bonds payable Common stock, $10 par value Other contributed capital Retained earnings (deficit) 10,500 100,000 300,000 150,000 130,000 $785,500 144,000 12,000 6,000 $198,000 42,000 38,000 (10,000) $91,000 Total