On January 1, 2013, Peach Company issued 1,570 of its $20 par value common shares with a fair value of $61 per share in exchange for the 1,810 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,735, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows:

		Peach Company		Swartz Company
Cash		$72,400		$11,900
Accounts receivable (net)		88,410		18,380
Inventory		61,540		24,290
Plant and equipment (net)		86,510		39,510
Land		25,730		22,520
Total assets		$334,590		$116,600
Accounts payable		$67,200		$16,590
Notes payable		84,930		19,260
Common stock, $20 par value		94,200		36,200
Other contributed capital		58,920		21,690
Retained earnings		29,340		22,860
Total equities		$334,590		$116,600

Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.

(a)

	Your answer is correct.

Prepare the journal entries on Peach Companys books to record the exchange of stock. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.)

Peach Company and Subsidiary Consolidated Balance Sheet January 1, 2010 Assets Cash 14309 Accounts Receivable 21090 Inventory 22605 Plant and Equipment 114130 Land 131196 Goodwill X Total Assets 303330 Liabilities and Stockholders' Equity Liabilities Accounts Payable Notes Payable LLL Total Liabilities Total Liabilities Common Stock Other Contributed Capital Retained Earnings LUVUD Total Stockholders' Equity Total Liabilities and Stockholders' Equity