Pretzel Corporation acquired $100$ percent of Stick Company's outstanding shares on January $1,20$X$7.$ Balance sheet data for the two

companies immediately after the purchase follow:

As indicated in the parent company balance sheet, Pretzel purchased $$62,000$ of Stick's bonds from the subsidiary at par value

immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes

the parent $$10,000.$ On the date of combination, the book values and fair values of Stick's assets and liabilities were the same.

Required:

a$.$ Prepare all consolidation entries needed to prepare a consolidated balance sheet for January $1,20$X$7.$

b$.$ Complete a consolidated balance sheet worksheet.

c$.$ Prepare a consolidated balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare a consolidated balance sheet.

Note: Amounts to be deducted should be entered with a minus sign.Item$1$

$50$

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Pretzel Corporation acquired $100$ percent of Stick Company$$s outstanding shares on January $1,20$X$7.$ Balance sheet data for the two companies immediately after the purchase follow:

Pretzel Corporation Stick Company

Cash $ $76,000$ $ $27,000$

Accounts Receivable $90,00047,000$

Inventory $98,00094,000$

Buildings and Equipment $412,000300,000$

Less: Accumulated Depreciation $(146,000)(88,000)$

Investment in Stick Company $312,000$

Investment in Stick Company Bonds $62,000$

Total Assets $ $904,000$ $ $380,000$

Accounts Payable $ $62,000$ $ $28,000$

Bonds Payable $190,000113,000$

Common Stock $283,000153,000$

Capital in Excess of Par $143,000$

Retained Earnings $369,000(57,000)$

Total Liabilities and Equities $ $904,000$ $ $380,000$

As indicated in the parent company balance sheet, Pretzel purchased $$62,000$ of Stick$$s bonds from the subsidiary at par value immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent $$10,000.$ On the date of combination, the book values and fair values of Stick$$s assets and liabilities were the same.

Required:

Prepare all consolidation entries needed to prepare a consolidated balance sheet for January $1,20$X$7.$

Complete a consolidated balance sheet worksheet.