Question
On January 1st 2020 The Skywalker and Vadar Companies had the following balance sheets: Skywalker Vadar cash 2,000,000 50,000 accounts receivable 1,000,000 80,000 inventory 1,000,000
On January 1st 2020 The Skywalker and Vadar Companies had the following balance sheets:
| Skywalker | Vadar | |||
| cash | 2,000,000 | 50,000 | ||
| accounts receivable | 1,000,000 | 80,000 | ||
| inventory |
| 50,000 | ||
| equipment | 1,000,000 | 100,000 | ||
| accumulated depreciation | 500,000 | 50,000 | ||
| land | 1,000,000 | 100,000 | ||
| total assets | 5,500,000 | 330,000 | ||
| accounts payable | 1,000,000 | 40,000 | ||
| jcommon stock $1 par | 2,000,000 | 100,000 | ||
| apic common stock | 1,000,000 | 100,000 | ||
| retained earnings | 1,500,000 | 90,000 |
On January 2nd Skywalker acquired all of the outstanding stock of Vadar Company for 500,000 shares of common stock. On January 2nd Skywalker stock was selling for $2 per share.
On January 1st the fair market value of Vadar's land was $125,000; the fair market value of their inventory was $130,000; the fair market value of the equipment was $30,000; other assets and liabilities had a fair market value equal to book value
REQUIRED:
- MAKE THE JOURNAL ENTRY SKYWALKER MAKES WHEN IT ACQUIRES THE VADAR STOCK
- MAKE THE JOURNAL ENTRY VADAR MAKES WHEN ITS STOCK IS ACQUIRED BY SKYWALKER
- PREPARE A CONSOLIDATED BALANCE SHEET ON JANUARY 2ND
- MAKE THE NECESSARY WORKSHEET ENTRIES NEEDED TO PREPARE THE CONSOLDIATED BALANCE SHEET.
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International Corporate Reporting Global And Diverse
Authors: Pauline Weetman, Ioannis Tsalavoutas, Paul Gordon
5th Edition
1138364991, 9781138364998
