Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

on January 2, 2019, prunce company acquired 90% of the outstanding common stock of sun company for $192,000 cash. just before the acquisition, the balance

on January 2, 2019, prunce company acquired 90% of the outstanding common stock of sun company for $192,000 cash. just before the acquisition, the balance sheets of the two companies were as follows
image text in transcribed
Company and related expenses. pare the elimination entry required for the preparation of a consolidated balance sheet workpaper on the date of acquisition. EXERCISE 3-3 Consolidated Balance Sheet, Stock Purchase LO ZLO 8 on January 2, 2019, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $192,0 ash. Just before the acquisition, the balance sheets of the two companies were as follows: Prunce Sun Cash $260,000 $ 64,000 Accounts receivable (net) 142,000 23,000 Inventory 117,000 54,000 Plant and equipment (net) 386,000 98,000 Land 63.000_32.000 Total asset $968,000 $271,000 Accounts payable $104,000 $ 47,000 Mortgage payable 72,000 39,000 Common stock, $2 par value 400,000 70,000 Other contributed capital 208,000 20,000 Retained earnings 184.000_95.000 Total equities $968,000 $271,000 The fair values of Sun Company's assets and liabilities are equal to their book values with the exception of lan Required: A. Prepare a journal entry to record the purchase of Sun Company's common stock. B. Prepare a consolidated balance sheet at the date of acquisition. EXERCISE 3-4 100 Durchnen nato of Artseitinnin 7 in

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Maintenance Management Auditing In Search Of Miantenance Management Excellence

Authors: Anthony Kelly

1st Edition

0831132671, 978-0831132675

More Books

Students also viewed these Accounting questions