Consolidated Balance Sheet, Stock Purchase On January 2, 2004, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $192,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: LO7 Prunce Sun Cash $260,000 $ 64,000 Accounts Receivable (net) 142,000 23,000 Inventory 117,000 54,000 Plant and Equipment (net) 386,000 98,000 Land 63,000 32,000 Total Assets $968,000 $271,000 Accounts Payable $104,000 $ 47,000 Mortgage Payable 72,000 39,000 Common Stock, $2 par value 400,000 70,000 Other Contributed Capital 208,000 20,000 Retained Earnings 184,000 95,000 Total Equities $968,000 $271,000 The fair values of Sun Company’s assets and liabilities are equal to their book values with the exception of land.
Required:
A. Prepare a journal entry to record the purchase of Sun Company's common stock.
B. Prepare a consolidated balance sheet at the date of acquisition.