HELP PLEASE
On January 1, 2021, Casey Corporation exchanged $3,244,000 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 information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3, 244,000 Carrying amount acquired 2,600,000 Excess fair value $ 644, eee to buildings (undervalued) 366,000 to licensing agreements (overvalued) (196,000) 170, eee to goodwill (indefinite life) 474,000 $ $ Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). $ Kennedy 192,eee 334,000 286,000 Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Casey $ 524, eee 1,455,000 1,500,000 3, 244,800 5,572,500 @ 531,500 $ 12,827,000 1,870,000 3,000,000 $ 5,682,000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Cash 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 Casey Kennedy 524,000 192,000 1,455,000 334,000 1,500,000 286,000 3,244, eee 5,572,500 1,870,000 3,000,000 531,500 e $ 12,827,000 $ 5,682,000 s (387,000) $ (382,000) (3,440,000 (2,700,000 (3,000,000) (1,000,000 (500,000) (6,000,000) (1,100,000 $(12,827,000) $ (5,682,000) Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation 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. Input all amounts as positive values.) Consolidated CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim. Casey Kennedy Debit Credit Cash $ 524,000 $ 192,000 Accounts receivable 1,455,000 334,000 Inventory 1,500,000 286,000 Investment in Kennedy 3,244,000 Buildings (net) 5,572,500 1,870,000 Licensing agreements 3,000,000 Goodwill 531,500 Total assets $ 12,827,000 $ 5,682,000 Accounts payable $ (387.000) (382,000) Long-term debt (3,440,000) (2.700,000) Common stock (3.000,000) (1,000,000) Additional paid-in capital (500,000) Retained earnings (6,000,000) (1,100,000) Total liabilitios and equities $(12,827,000) $ (5,682,000) S 0 $ 0 0 $ 0
