I need help getting Retained earnings and also with completing the Consolidated Subsidiary
On January 1, 2021, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $351,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Tucker Company Company Book Value Book Value Cash $ 75,000 $ 39,800 Receivables 361,000 171,00 Inventory 446,000 235,000 Land 212,000 203,000 Buildings (net) 467,000 315,000 Equipment (net) 184,000 51,300 Accounts payable (175,000) (60,600) Long-term liabilities (495,000) (351,000) Common stock-$1 par value (110,000) Common stock-$20 par value (120,000) Additional paid in capital (360,000) Retained earnings, 1/1/21 (605,000) (483,500) Note: Parentheses Indicate a credit balance 0 In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $6.000. Land by $14.800 and Buildings by $22,000. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition b. To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2021 Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition. (Input all amounts as positive values.) Show less Cash Receivables Inventory Land Buildings (net) Equipment (net) Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Consolidated Totals $ 78.800 532.000 687.000 429,800 804,000 235,300 $ 2,766,900 $ (235,600) (1.197.000) 130,000 (529,500) 706,800 $ (1.125,300) Accounts Consolidated Totals $ MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2021 Marshall Tucker Consolidation Entries Company Company Debit Credit $ 39,000 $ 39,800 361,000 171.000 446,000 235,000 6,000 212,000 203.000 14,800 467,000 315,000 22,000 184,000 51,300 678,300 $ 1,709,000 $ 1,015.100 (175,000) (60,600) 846,000 (351,000) 130,000 (120,000) 120,000 529,500 706,800 (483,500) $ 2,037,300 $ (1 116 in $ 162,800 $ 678,300 Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Tucker Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/21 Total liabilities and equities 78,800 532.000 687.000 429,800 804,000 235,300 $ 2,766,900 (235,600) (1.197,000) 130,000 529,500 706,800 (66,300) Oo
