Plexi Company purchased 85% of the outstanding common stock of Sesnor Company on January 1, 2009 for $5,700,000 NOTE: COST METHOD USED BY PARENT Debit 5,700,000 Credit REAL Entry Jan. 1, 2009 Investment in Subsidiary - Sesnor Cash $5,700,000 The Sesnor Company balance sheet on 1/1/09 and 12/31/12 are as follows Fair Value 1/1/09 Sesnor Sesnor 1/1/2009 12/31/2012 Difference Balance Sheet Assets Cash Accounts Receivable Inventory Net Plant Assets Land Other Assets 120,000 S 260,000 350,000 $450,000 1,275,000$950,000 3,200,000 3,450,000 1,000,000$ 1,000,000 $250,000 5,945,000 $ 6,360,000 $120,000 350,000 $ 1,275,000 $ 3,200,000 $2,500,000 $ 1,500,000 Total Assets Liabilities Accounts Payable Other Liabilities 1,375,000$1,150,000 500,000 325,000 1,875,000$1,475,000 $1,375,000 $750,000 $250,000 Total Liabilities UI Common Stock (Par $1) APIC Retained Earnings 100,000 $ 100,000 900,000 900,000 3,070,000 3,885,000 4,070,0004,885,000 Total Equity Total Liabilities &EquityS 5,945,0006,360,000