On February $1,2024,$ Sunny Company purchased $95\%$ of the outstanding common stock of Maria Company and $85\%$ of the

outstanding common stock of Richard Company. Immediately before the two acquisitions, balance sheets of the threecompanieswere

as follows:

The following additional information is relevant.

One wek before the acquisitions, Sunny Company had advanced $$14,500$ to Maria Company and $$4,800$ to Richard

Company. Maria Company recorded an increase to Accounts Payable for its advance, but Richard Company had not

recorded the transaction.

On the date of acquisition, Sunny Company owed Maria Company $$12,300$ for purchases on account, and Richard Company

owed Sunny Company $$4,500$ and Maria Company $$5,700$ for such purchases. The goods purchased had all been sold to

outside parties prior to acquisition.

Sunny Company exchanged $13,300$ shares of its common stock with a fair value of $$13$ per share for $95\%$ of the outstanding

common stock of Maria Company. In addition, stock issue feer of $$5,000$ were paid in cash. The acquisition was accounted for

as a purchase.

Sunny Company paid $$52,700$ cash for the $85\%$ interest in Richard Company

$2,750$ dollars of Maria Company's notes payable and $$10,200$ of Richard Company's notes payable were payable to Sunny

Company

Assume that for Maria, anydifference between bookvalue and the value implied by the purchase price relates to subsidiary

land. However, for Richard, assume that any excess of book value over the value implied by the purchase price isdue to

overvalued buildings.

$($a$)$

Give the book entries to record the two acquisitions in the accounts of Sunny Company. If no entry is required, select $"$Io Entry" for

the accownt titles and enter of for the amownts. Credit occownt titles are automatically indented when the amownt is entered. Do not indent

monually. List all debit entries before credit entries.$)$

$($To record acquisition of Maria Co$.)$

$($To record acquisition of Richard Co$.)$