Check my w Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $208,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation Faith Corporation Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Mecounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 60,000 86,000 101,000 210,000 208,000 $665,000 $ 35,000 46,000 61,000 152,000 $294,000 $ 85,000 140,000 81,000 359,000 $665,000 $ 23,000 63,000 51,000 157,000 $ 294,000 At the date of the business combination, the book values of Faith's net assets and liabilities approximated fair value. Assume Faith Corporation's accumulated depreciation on buildings and equipment on the acquisition date was $12,000. Required: a. Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries B Record the basic consolidation entry. Note: Enter debits before credits Required: a. Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 84 > Record the basic consolidation entry. Note: Enter debits before credits Event Accounts Debit Credit Record entry Clear entry view consolidation entries view transaction list ok Consolidation Worksheet Entries Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit 2 Record entry Clear entry view consolidation entries Sok b. Prepare a consolidated balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) BLANK AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X2 Consolidation Entries DR CR Blank Faith Consolidated Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Faith Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity
