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Pretzel Corporation acquired 1 0 0 percent of Stick Company's outstanding shares on January 1 , 2 0 X 7 . Balance sheet data for
Pretzel Corporation acquired percent of Stick Company's outstanding shares on January X Balance sheet data for the two
companies immediately after the purchase follow:
As indicated in the parent company balance sheet, Pretzel purchased $ 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 $ 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 X
b Complete a consolidated balance sheet worksheet.
c Prepare a consolidated balance sheet.
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Prepare a consolidated balance sheet.
Note: Amounts to be deducted should be entered with a minus sign.Item
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Pretzel Corporation acquired percent of Stick Companys outstanding shares on January X Balance sheet data for the two companies immediately after the purchase follow:
Pretzel Corporation Stick Company
Cash $ $
Accounts Receivable
Inventory
Buildings and Equipment
Less: Accumulated Depreciation
Investment in Stick Company
Investment in Stick Company Bonds
Total Assets $ $
Accounts Payable $ $
Bonds Payable
Common Stock
Capital in Excess of Par
Retained Earnings
Total Liabilities and Equities $ $
As indicated in the parent company balance sheet, Pretzel purchased $ of Sticks 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 $ On the date of combination, the book values and fair values of Sticks assets and liabilities were the same.
Required:
Prepare all consolidation entries needed to prepare a consolidated balance sheet for January X
Complete a consolidated balance sheet worksheet.
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