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The following are the balance sheets for Lake and Pond immediately prior to Lake's September 1, 2020, acquisition of Pond Lake Pond Anet Cash $265,000

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The following are the balance sheets for Lake and Pond immediately prior to Lake's September 1, 2020, acquisition of Pond Lake Pond Anet Cash $265,000 $100,000 Accounts receivable 25,000 20,000 Inventory 35,000 30,000 Land 25,000 10,000 Bldg. & equip.net 100.000 100.000 Total $450,000 5260,000 Liabilities & equity $ 20,000 $ 60,000 Accounts payable Bands payable Commonwlock & APIC 100,000 150,000 110.000 Retained earning 10.000 20.000 Total $450,000 $260,000 Assume that Lake buys som of Pond's common stock for $200,000 cash. The fair value of Ponds land is $20,000, the fair value of Pond's buildings and equipment is $110,000, and all other fair values equal book values. (4th Regules: 1. Prepare the September 1, 2020, joumal entry on Lake's books to record the acquisition of Pont. 2. Calculate the poodwill if any (4 marks) 3. Prepare the elimination entre needed to peepava molidated balance sheet immediately after the acquisition 4. Prepare the consolidated balance sheet immediately after the inition (marks) The following are the balance sheets for Lake and Pond immediately prior to Lake's September 1, 2020, acquisition of Pond Lake Pond Anet Cash $265,000 $100,000 Accounts receivable 25,000 20,000 Inventory 35,000 30,000 Land 25,000 10,000 Bldg. & equip.net 100.000 100.000 Total $450,000 5260,000 Liabilities & equity $ 20,000 $ 60,000 Accounts payable Bands payable Commonwlock & APIC 100,000 150,000 110.000 Retained earning 10.000 20.000 Total $450,000 $260,000 Assume that Lake buys som of Pond's common stock for $200,000 cash. The fair value of Ponds land is $20,000, the fair value of Pond's buildings and equipment is $110,000, and all other fair values equal book values. (4th Regules: 1. Prepare the September 1, 2020, joumal entry on Lake's books to record the acquisition of Pont. 2. Calculate the poodwill if any (4 marks) 3. Prepare the elimination entre needed to peepava molidated balance sheet immediately after the acquisition 4. Prepare the consolidated balance sheet immediately after the inition

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