On January 2, 2019, 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:

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.

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Prunce Sun $ 64,000 Cash $260,000 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 asset $968,000 $271,000 $ 47,000 Accounts payable $104,000 Mortgage payable Common stock, $2 par value Other contributed capital Retained earnings 72,000 39,000 400,000 70,000 208,000 20,000 184,000 95,000 Total equities $968,000 $271,000