Please fill out the entries and balance sheet
Jersey Corporation acquired 100 percent of Lime Company on January 1, 20X7, for $300,000. The trial balances for the two companies on December 31, 20X7, included the following amounts Jersey Corporation Lime Company Debit Debit Credit Item Cash Accounts Receivable Inventory Credit $ 25,000 55,000 150,000 35,000 150,000 Buildings and Equipment Investment in Lime Co. Stock Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings $ 82,000 50,000 170,000 80,000 500,000 349,000 500,000 25,000 75,000 50,000 265,000 15,000 80,000 35,000 $ 155,000 70,000 200,000 300,000 372,000 700,000 84,000 $ 75,000 35,000 50,000 75,000 125,000 450,000 es Income from Subsidiary $1,881,000 $1,881,000 810,000 $ 810,000 Additional Information 1. On January 1, 20X7, Lime reported net assets with a book value of $200,000. A total of $40,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7 2. Lime's depreciable assets had an estimated economic life of 10 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Jersey used the equity-method in accounting for its investment in Lime 4. Detailed analysis of receivables and payables showed that Lime owed Jersey $24,000 on December 31 20X7 Jersey Corporation acquired 100 percent of Lime Company on January 1, 20X7, for $300,000. The trial balances for the two companies on December 31, 20X7, included the following amounts Jersey Corporation Lime Company Debit Debit Credit Item Cash Accounts Receivable Inventory Credit $ 25,000 55,000 150,000 35,000 150,000 Buildings and Equipment Investment in Lime Co. Stock Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings $ 82,000 50,000 170,000 80,000 500,000 349,000 500,000 25,000 75,000 50,000 265,000 15,000 80,000 35,000 $ 155,000 70,000 200,000 300,000 372,000 700,000 84,000 $ 75,000 35,000 50,000 75,000 125,000 450,000 es Income from Subsidiary $1,881,000 $1,881,000 810,000 $ 810,000 Additional Information 1. On January 1, 20X7, Lime reported net assets with a book value of $200,000. A total of $40,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7 2. Lime's depreciable assets had an estimated economic life of 10 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Jersey used the equity-method in accounting for its investment in Lime 4. Detailed analysis of receivables and payables showed that Lime owed Jersey $24,000 on December 31 20X7
