advanced accounting

On January 1, 2021, Casey Corporation exchanged $3,258,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting informatio systems Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ 12,785,000 $ 6,410,000 $ (395,000) $ (470,000) (3,390,000) (3,340,000) (3,000,000) (1,000,000) (500,000) (6,000,000) (1,100,000) $ (12,785,000) $ (6,410,000) Consolidated At the acquisition date, Casey prepared the following fair-value allocation schedule: Cash $ 3, 258,000 2,600,000 $ 658,000 Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) $ 358,000 (135,000) 223,000 435,000 Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Cor where multiple consolidation entries are required.combine all debit entries into one amount and enter this column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the worksheet. Input all amounts as positive values.) Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim. Casey Kennedy Debit Credit $ 433,000 $ 142,500 1,275,000 311,000 1,705,000 246,500 3,258,000 5.857.500 2,340.000 3,370.000 256,500 $ 12.785 000 $ 6.410.000 $ (395,000) (470 000) (3.390,000) 3.340 000) (3.000.000) (1.000.000) (500,000) (6.000.000) (1.100.000) 5 (12.785.000) S (6.410.000) Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities CamScanner Casey Kennedy 142,500 311,000 246,500 433,000 1,275,000 1,705,000 3,258,000 5,857,500 Consolidated Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid-in canital CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim Casey Kennedy Debit Credit $ 433 000 142.500 1.275,000 311.000 1.705.000 246.500 3 258.000 5.857 500 2.340.000 3.370 000 200 en 2,340,000 3,370,000 Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements 256,500 12,785,000 (395,000) (3,390,000) (3,000,000 6,410,000 (470,000) (3,340,000) (1,800,000) 7500. AGA