1 On January 1st 2021 Ken and Barbie had the following balance sheets: 2 3 Ken Barbie 4 cash 10000 900000 5 accts receivable 40000 400000 6 inventory 80000 800000 7 land 130000 900000 8 equipment 200000 1,200,000 9 accumulated dep equip 20000 120,000 10 patent 10000 60000 11 12 accts payable 13 note payable 4000 40000 30000 300000 14 15 common stock $1 par 150000 850000 16 apic common stock 100000 1,000,000 17 retained earnings 166000 1,950,000 18 19 20 On January 2nd Barbie issued (sold) 400,000 shares of its stock to acquire all of Ken Company's stock 21 On this date Barbie's stock was selling for $2 per share. 22 On January 2nd Ken's assets had the following fair market values 23 24 land $180,000 25 equipment $300,000 26 patent $2,000 27 in process R&D $50,000 28 29 Both Ken and Barbie depreciate equipment over a 10 year life with no salvage 30 Both Ken and Barbie's patent have 5 years of remaining life with no salvage. 31 32 REQUIRED: 33 34 A) MAKE THE JOURNAL ENTRY BARBIE MAKES WHEN IT SELLS ITS STOCK (TO KEN'S STOCKHOLDER'S) FOR THEIR STOCK B) MAKE THE JOURNAL ENTRY KEN MAKES WHEN ITS STOCKHOLDERS SELL THEIR STOCK TO BARBIE FOR STOCK 35 C) MAKE THE NECESSARY WORKSHEET ENTRIES NEEDED TO CREATE A CONSOLIDATED BALANCE SHEET 36 D) PRODUCE A CONSOLIDATED BALANCE SHEET ON JANUARY 2ND. 37