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Assume that Parent Company decides to acquire Sub Company for $564,000 of debentures Sub Company Balance Sheet Prepare the consolidating journal entries for a 100%

Assume that Parent Company decides to acquire Sub Company for $564,000 of debentures
Sub Company Balance Sheet Prepare the consolidating journal entries for a 100% Asset Acquisition
Assets, Liabilities & Equities Book Value Fair Value Account Amount DR CR
Cash $40,000 $40,000
AR $15,000 $10,000
Inventory $105,000 $200,000
Land $60,000 $100,000
Plant and Equipment $400,000 $300,000
Less: Accumulated Depreciation -$150,000
Goodwill $10,000
Patent $0 $0
Total Assets $480,000 $650,000
AP $50,000 $50,000
Common Stock $100,000
Additional Paid In Capital $60,000
Retained Earnings $270,000
Total Liabilities & Equity $480,000
Assume that Parent Company decides to acquire Sub Company for $580,000 of debentures
Sub Company Balance Sheet Prepare the consolidating journal entries for a 100% Asset Acquisition
Assets, Liabilities & Equities Book Value Fair Value Account Amount DR CR
Cash $40,000 $40,000
AR $15,000 $10,000
Inventory $105,000 $200,000
Land $60,000 $100,000
Plant and Equipment $400,000 $300,000
Less: Accumulated Depreciation -$150,000
Goodwill $10,000
Patent $0 $0
Total Assets $480,000 $650,000
AP $50,000 $50,000
Common Stock $100,000
Additional Paid In Capital $60,000
Retained Earnings $270,000
Total Liabilities & Equity $480,000
Assume that Parent Company decides to acquire Sub Company for $625,000 of debentures
Sub Company Balance Sheet Prepare the consolidating journal entries for a 100% Asset Acquisition (using Cash)
Assets, Liabilities & Equities Book Value Fair Value Account Amount DR CR
Cash $40,000 $40,000
AR $15,000 $10,000
Inventory $105,000 $200,000
Land $60,000 $100,000
Plant and Equipment $400,000 $300,000
Less: Accumulated Depreciation -$150,000
Goodwill $10,000
Patent $0 $0
Total Assets $480,000 $650,000
AP $50,000 $50,000
Common Stock $100,000
Additional Paid In Capital $60,000
Retained Earnings $270,000
Total Liabilities & Equity $480,000

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