Constructing the Consolidated Balance Sheet at Acquisition

Winston Company purchased all of Marcus Company's common stock for $$360,000$ cash on January $1,$ at which time the separate balance sheets of the two

corporations appeared as follows.

During purchase negotiations, Winston determined the appraised value of Marcus's Other Assets was $$432,000,$ and all of its remaining assets and liabilities were

appraised at values approximating their book values. The balance of the purchase price was ascribed to goodwill. Prepare the consolidating adjustments and the

consolidated balance sheet at acquisition.

Winston

Company Marcus

Company Consolidating

Adjustments Consolidated

Investment in Marcus $$360,000$ $$-$

Other assets $1,380,000420,000$

Goodwill $-0$

Total assets $$1,740,000$ $$420,000$

Liabilities $$540,000$ $$96,000$

Contributed capital $840,000180,000$

Retained earnings $360,000144,000$

Total liabilities and equity $$1,740,000$ $$420,000$During purchase negotiations, Winston determined the appraised value of Marcus's Other Assets was $$432,000,$ and all of its remaining assets and liabilities were

appraised at values approximating their book values. The balance of the purchase price was ascribed to goodwill. Prepare the consolidating adjustments and the

consolidated balance sheet at acquisition.