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On January 2, 2020, Penelope Company acquired 90% of the outstanding common stock of Sun Goddess for $192,000 cash. The balance sheets of the two
On January 2, 2020, Penelope Company acquired 90% of the outstanding common stock of Sun Goddess for $192,000 cash. The balance sheets of the two companies were as follows at December 31, 2019: Penelope Cash Accounts Receivable,net Inventory Plant & Equipment,net Land Total Assets Accounts Payable Mortgage Payable Common Stock, $2 par value Other Contributed Capital Retained Earnings Total Liabilites & Equities $260,000 142,000 117,000 386,000 63,000 $968,000 $104,000 72,000 400,000 208,000 184,000 $968,000 Sun Goddess $64,000 23,000 54,000 98,000 32,000 $271,000 $47,000 39,000 70,000 20,000 95,000 $271,000 The fair values of Sun Goddess' assets and liabilities are equal to their book values with the exception of land. Required: A. Prepare the journal entry to record the purchase of Sun Goddess' common stock. B. Prepare the CAD Schedule: Your answer should be rounded to the nearest dollar. C. Prepare a consolidated balance sheet at the date acquisition
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