ADVANCE ACCOUNTING. NEED ANSWER FAST

On May 1, 2021, Manama Co. acquired all of the voting shares of Sitra Co. by issuing 15,000 shares of $2 par value and $22 fair value each and $4,000 in stock issuance costs. Manama and Sitra reported the following account balances. Assume that Sitra's building was undervalued by $38,200 and equipment was overvalued by $10,800. 7 points Save A Account Manama Current assets Investment in Sitra Co. Building Equipment Goodwill Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equity $342,200 ? 631,500 34,700 0 $1,338,400 (438,400) (100,000) (200,000) (600,000) $1,338,400 Partial Consolidated Worksheet Sheet Sitra Consolidation entries Debit Credit $78,300 0 209,000 307,000 0 $594,300 (334,300) (50,000) 0 (210,000) $594,300 Required: (7 Points) 1. Prepare the journal entry to record Manama investment in Sitra Co. (please leave a line between entries) 2. Prepare consolidation entries 'S' and 'A' that are necessary to complete the worksheet. (please leave a line between entries) 3. Explain why a subsidiary's revenues and expenses are not consolidated on date of acquisition. For the toolbar. press ALT-F10 (PC) or ALT-FN+F10 (Mac). B I S Paragraph 14px I 11 Arial 5 10 x2 XT [+ On May 1, 2021, Manama Co. acquired all of the voting shares of Sitra Co. by issuing 15,000 shares of $2 par value and $22 fair value each and $4,000 in stock issuance costs. Manama and Sitra reported the following account balances. Assume that Sitra's building was undervalued by $38,200 and equipment was overvalued by $10,800. 7 points Save A Account Manama Current assets Investment in Sitra Co. Building Equipment Goodwill Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equity $342,200 ? 631,500 34,700 0 $1,338,400 (438,400) (100,000) (200,000) (600,000) $1,338,400 Partial Consolidated Worksheet Sheet Sitra Consolidation entries Debit Credit $78,300 0 209,000 307,000 0 $594,300 (334,300) (50,000) 0 (210,000) $594,300 Required: (7 Points) 1. Prepare the journal entry to record Manama investment in Sitra Co. (please leave a line between entries) 2. Prepare consolidation entries 'S' and 'A' that are necessary to complete the worksheet. (please leave a line between entries) 3. Explain why a subsidiary's revenues and expenses are not consolidated on date of acquisition. For the toolbar. press ALT-F10 (PC) or ALT-FN+F10 (Mac). B I S Paragraph 14px I 11 Arial 5 10 x2 XT [+