The following are preliminary financial statements for Bradley Co. and Jackson Co. for the year ending +December 31,2018 prior to Bradley's acquisition of Jackson. Bradley Co. JacksonCo. (360,000) 240,000 (120,000 Sales xpenses Net income (480,000) (120,000) Retained earnings, January 1, 2018 Net income Dividends paid Retained earnings, December 31, 2018 36,000 120,000 108,000 336.000 Current assets (includes cash) 360,000 120,000 480,000 an Building (net) Total assets Liabilities Common stoc Additional paid-in capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity (108,000)(132,000) (192,000) (72,000) (96,000) (564.000 348.000 960000 564000) (12,000) On December 31, 2018 (subsequent to the preceding statements), Bradley exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Jackson. Bradley's stock on that date has a fair value of $60 per share. Bradley was willing to issue 10,000 shares of stock because Jackson's land was appraised at $204,000. Bradley also paid $14,000 to several attorneys and accountants who assisted in creating this combination. Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018 after the acquisition transaction is completed Steps a. Prepare journal entries to record the acquisition on Bradley's records. b. Prepare a post-acquisition (after acquisition) column of accounts for Bradley Co. c. Prepare consolidation journal entries (S) and (A) d. Prepare a worksheet to produce a consolidated balance sheet as of the acquisition date. Use Excel template provided. The following are preliminary financial statements for Bradley Co. and Jackson Co. for the year ending +December 31,2018 prior to Bradley's acquisition of Jackson. Bradley Co. JacksonCo. (360,000) 240,000 (120,000 Sales xpenses Net income (480,000) (120,000) Retained earnings, January 1, 2018 Net income Dividends paid Retained earnings, December 31, 2018 36,000 120,000 108,000 336.000 Current assets (includes cash) 360,000 120,000 480,000 an Building (net) Total assets Liabilities Common stoc Additional paid-in capital Retained earnings, December 31, 2018 Total liabilities and stockholders' equity (108,000)(132,000) (192,000) (72,000) (96,000) (564.000 348.000 960000 564000) (12,000) On December 31, 2018 (subsequent to the preceding statements), Bradley exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Jackson. Bradley's stock on that date has a fair value of $60 per share. Bradley was willing to issue 10,000 shares of stock because Jackson's land was appraised at $204,000. Bradley also paid $14,000 to several attorneys and accountants who assisted in creating this combination. Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2018 after the acquisition transaction is completed Steps a. Prepare journal entries to record the acquisition on Bradley's records. b. Prepare a post-acquisition (after acquisition) column of accounts for Bradley Co. c. Prepare consolidation journal entries (S) and (A) d. Prepare a worksheet to produce a consolidated balance sheet as of the acquisition date. Use Excel template provided
