Problem 3-7 Purchase Using Cash and Using Stock

Balance sheets for Prego Company and Sprague Company as of December 31, 2010.

This comes from Advanced Accounting Fifth Addition.

I need this completed by Sunday afternoon please. Thank you

PROBLEM 3-7 Purchase Using Cash and Using Stock Balance sheets for Prego Company and Sprague Company as of December 31, 2010, follow: Problems 145 LO8 LO8 Copyright 2012 John Wiley & Sons, Inc. 146 Chapter 3 Consolidated Financial StatementsDate of Acquisition Prego Company Sprague Company Cash $ 700,000 $111,000 Accounts receivable (net) 892,000 230,000 Inventory 544,000 60,000 Property and equipment (net) $1,927,000 $468,000 Land 120,000 94,000 Total assets $4,183,000 $963,000 Accounts payable $ 302,000 $152,000 Notes payable 588,000 61,000 Long-term debt 350,000 90,000 Common stock 1,800,000 500,000 Other contributed capital 543,000 80,000 Retained earnings 600,000 80,000 Total equities $4,183,000 $963,000 The fair values of Sprague Company's assets and liabilities are equal to their book values. Required: Prepare a consolidated balance sheet as of January 1, 2011, under each of the following assumptions: A. On January 1, 2011, Prego Company purchased 90% of the outstanding common stock of Sprague Company for $594,000. B. On January 1, 2011, Prego Company exchanged 11,880 of its $20 par value common shares with a fair value of $50 per share for 90% of the outstanding common shares of Sprague Company. The transaction is a purchase