For this assignment, read the case facts below and then respond to the case requirements.

On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly-owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 50,000 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent profitability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money. Immediately prior to the acquisition, the following data for both firms were available:

	Pacifica		Seguros
Revenues		-1,200,000
Expenses		890,000
Net income		-310,000
Retained earnings, 1/1		-950,000
Net income		-310,000
Dividends declared		90,000
Retained earnings, 12/31		-1,170,000
Cash		86,000		85,000
Receivables and inventory		750,000		190,000
Property, plant and equipment		1,400,000		450,000
Investment in Seguros		1,062,500
Research and development asset
Goodwill
Trademarks		300,000		160,000
Total assets		3,598,500		885,000
Liabilities		-500,000		-180,000
Contingent performance obligation		-62,500
Common stock		-650,000		-200,000
Additional paid-in capital		-1,216,000		-70,000
Retained earnings		-1,170,000		-435,000
Total liabilities and equities		-3,598,500		-885,000

In addition, Pacifica assessed a research and development project underway at Seguros to have a fair value of $100,000. Although not yet recorded on its books, Pacifica paid legal fees of $15,000 in connection with the acquisition and $9,000 in stock issue costs.

Requirement:

Prepare the following in Excel:

1. Pacifica's entries to account for the consolidation transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs. (Use a 0.961538 present value factor where applicable.)
2. A post-acquisition column of accounts for Pacifica.
3. A worksheet to produce a consolidation balance sheet as of the acquisition date.