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The following account balances are for the year ending December 31, 2009 for both companies. Revenues Expenses Equity in income of Bubba Manufacturing Net income
The following account balances are for the year ending December 31, 2009 for both companies. Revenues Expenses Equity in income of Bubba Manufacturing Net income John Doe Bubba Enterprises Manufacturing S(298,000,000) $(103,750,000) 271,000,000 95,800,000 4,361,500) 0 S( 31,361,500) $C 7.950.000) Retained earnings, January 1, 2009 Net income (above) Dividends paid Retained earnings, December 31, 2009 S( 2,500,000) $( 100.000) ( 31,361,500) (7,950,000) 5.000.000 3,000,000 $( 28,861,500) $( 5.050.000) $20,800,000 Current Assets Investment in Bubba Manufacturing Land Buildings Equipment (net) Total assets $30,500,000 13,161,500 1,500,000 5,600,000 3.100.000 $53.861,500 1,700,000 2,360,000 2.960.000 $27.820.000 Accounts payable SC 3.100,000) $(4,900.000) Notes payable ( 1,000,000) Common stock ( 2,900,000) ( 6,000,000) Additional paid-in capital ( 19,000,000) (10,870,000) Retained earnings, Dec. 31, 2009 (above) (28.861,500) 5.050.000) Total liabilities and stockholders' equity S (53.861,500) $(_27.820.000) Required: Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment
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