On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows: Potter Hogwarts cash equipment a/d equip Land building a/d building patent total assets 1,000,000 1,000,000 100,000 2,000,000 3,000,000 1,000,000 50,000 5,950,000 50,000 100,000 10,000 20,000 100,000 30,000 50,000 280,000 accounts payable notes payable 1,000,000 1,000,000 40,000 40,000 common stock $5 par apic c/s rle 3,000,000 100,000 850,000 150,000 50,000 On January 2nd Potter acquired 80% of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share. At that time the fair market value of Hogwarts assets were: equipment Land building patent 60,000 30,000 110,000 40,000 REQUIRED: A) MAKE THE JOURNAL ENTRY POTTER MAKES WHEN IT ISSUES THE STOCK TO ACQUIRE HOGWARTS B) MAKE THE JOURNAL ENTRY HOGWARTS MAKES WHEN POTTER ISSUES THE STOCK TO ACQUIRE HOGWARTS C) MAKE ANY NECESSARY WORKSHEET ENTRIES D) PREPARE A CONSOLIDATED BALANCE SHEET ON 1/2/2017 BONUS 2 PTS NO PARTIAL CREDIT: WHAT WOULD BE THE AMOUNT OF GOODWILL IF POTTER WAS DOING ITS BOOKS UNDER IFR On January 1 2017 the balance sheets of Potter Co. and Hogwarts Co. were as follows: Potter Hogwarts cash equipment a/d equip Land building a/d building patent total assets 1,000,000 1,000,000 100,000 2,000,000 3,000,000 1,000,000 50,000 5,950,000 50,000 100,000 10,000 20,000 100,000 30,000 50,000 280,000 accounts payable notes payable 1,000,000 1,000,000 40,000 40,000 common stock $5 par apic c/s rle 3,000,000 100,000 850,000 150,000 50,000 On January 2nd Potter acquired 80% of the stock of Hogwarts by issuing 50,000 shares of common stock when the stock was selling for $11 per share. At that time the fair market value of Hogwarts assets were: equipment Land building patent 60,000 30,000 110,000 40,000 REQUIRED: A) MAKE THE JOURNAL ENTRY POTTER MAKES WHEN IT ISSUES THE STOCK TO ACQUIRE HOGWARTS B) MAKE THE JOURNAL ENTRY HOGWARTS MAKES WHEN POTTER ISSUES THE STOCK TO ACQUIRE HOGWARTS C) MAKE ANY NECESSARY WORKSHEET ENTRIES D) PREPARE A CONSOLIDATED BALANCE SHEET ON 1/2/2017 BONUS 2 PTS NO PARTIAL CREDIT: WHAT WOULD BE THE AMOUNT OF GOODWILL IF POTTER WAS DOING ITS BOOKS UNDER IFR