Required A : Cash Receivables inventory buildings (net) Equipment (net) Total assetsAccounts payableLong-term liabilitiesCommon stock Additional paid-in capitalRetained earnings Total liabilities and equities Required B: please see image
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $310 000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $24,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $9.000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Tucker company Company Book Value Back Value Cash $ 75 308 38 380 Receivables 354. 983 Inventory 98. 386 383, GE3 220. 086 245. 383 253 080 Buildings ( net) Equipment ( net ) 476 388 274. 980 174. 383 58, 486 Accounts payable Long-term liabilities 241, 868) Comon stock $1 par value (218. 986 118, GE8) Comon stock $28 par value Additional paid in capital Retained earnings, 1/1/18 514, G88) (463, 280 Note: Parentheses indicate a credit balance. In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $9,000, Land by $25.800, and Buildings by $32,200. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. Other accounts will also need to be added or adjusted to reflect the journal entries Marshall prepared in recording the acquisition. . To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two companies as of January 1. 2018. Complete this question by entering your answers in the tabs below. Required A Required B To verify the answers found in part (a), prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 201B. (for accounts where multiple consel dation entries are req red, combine all desis entries into one amount and enter this amount in the debit column of the worksheet. similarly, combine all cread choresline the Amount and enter this amount in the credit spluma of the worksheet. . Show less & PANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2018 Accounts Marshall Tucker Consolidation Entries Consolidated Company Company Debit 19
