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On December 31, 20X8, Banner Corporation acquired 80 percent of Dwyer Companys common stock for $136,000. At the acquisition date, the book values and fair
On December 31, 20X8, Banner Corporation acquired 80 percent of Dwyer Companys common stock for $136,000. At the acquisition date, the book values and fair values of all of Dwyers assets and liabilities were equal. Banner uses the equity method in accounting for its investment. Balance sheet information provided by the companies at December 31, 20X8, immediately following the acquisition is as follows: |
Banner Corporation | Dwyer Company | |||||
Cash | $ | 74,000 | $ | 20,000 | ||
Accounts Receivable | 120,000 | 70,000 | ||||
Inventory | 180,000 | 90,000 | ||||
Fixed Assets (net) | 350,000 | 240,000 | ||||
Investment in Dwyer Company Stock | 136,000 | |||||
Total Debits | $ | 860,000 | $ | 420,000 | ||
Accounts Payable | $ | 65,000 | $ | 30,000 | ||
Notes Payable | 350,000 | 220,000 | ||||
Common Stock | 150,000 | 90,000 | ||||
Retained Earnings | 295,000 | 80,000 | ||||
Total Credits | $ | 860,000 | $ | 420,000 | ||
Required: |
Prepare a consolidated balance sheet for Banner at December 31, 20X8. |
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