Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Plump Slim Corporation Corporation em Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Slim Corporation Stock Total Assets 26,000 87,000 110,000 220,000 189,000 $632,000 $ 92,000 150,000 100,000 290,000 $632,000 $ 18,000 37,000 60,000 150,000 $265,000 $ 35,000e 80,000 60,000 90,000 $265,000 Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity At the date of the business combination, Slim's net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000 Required a. Prepare the consolidating entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidationn Worksheet Entries Record the basic consolidation entry Note: Enter debits before credits. Entry Debit Accounts Credit Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition Plump Slim Corporation Corporation Item Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Slim Corporation Stock Total Assets Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities&Stockholders' Equity 26,000 87,000 110,000 220,000 189,000 $632,000 $ 92,000 150,000 100,000 290,000 $632,000 $ 18,000 37,000 60,000 150,000 265,000 $ 35,000 80,000 60,000 90,000 $265,000 At the date of the business combination, Slim's net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000 Required a. Prepare the consolidating entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidationn Worksheet Entries Record the excess value (differential) reclassification entry Note: Enter debits before credits. Debit Entry Accounts Credit b. Prepare a consolidation balance sheet worksheet. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amoun and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PLUMP CORPORATION AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20X2 Consolidation Entries Consolidated Plump Corp. Slim Corp. DR CR Assets Cash Accounts receivable Inventory Buildings & equipment (net) Investment in Slim Corp Total Assets Liabilities & Stockholders' Equity Accounts payable Notes payable Common stock Retained earnings Total Liabilities & Equity 0 S 0 S 0 S 0 S
