On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company’s common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows:

Required

a. Give the consolidation entries required to prepare a consolidated balance sheet immediately after the acquisition of Series Company shares.

b. Explain how consolidation entries differ from other types of journal entries recorded in the normal course of business.

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Item Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Series Company Total Accounts Payable Bonds Payable Common Stock Retained Earnings Total Playoff Corp. $ 15,000 30,000 80,000 120,000 100,000 $345,000 $ 25,000 150,000 55,000 115,000 $345,000 Series Company Book Value $ 5,000 10,000 20,000 50,000 $85,000 $ 3,000 25,000 20,000 37,000 $85,000 Fair Value $ 5,000 10,000 25,000 70,000 $110,000 $ 3,000 25,000 $ 28,000