Verizon 18% 5:22 PM A chegg.com Question: The following are preliminary financial statements for Choc... 3. The following are preliminary financial statements for Choco Co. and Cake Co. for the year ending December 31, 2019 prior to Choco's acquisition of Cake. Cash and Receivable Inventories Land Building Accounts payable Long-term debt Common stock Additional paid in capital Retained earnings 12/33/19 Revenues Expenses Choco Book Values 120,000 240,000 120,000 480,000 70,000 38,000 192,000 96,000 564,000 360,000 240,000 Cake Book Values 30,000 90,000 108,000 336,000 100,000 32,000 72,000 12,000 348,000 228,000 132,000 Cake Fair Values 30,000 96,000 130,000 350,000 100,000 32,000 On 12/31/2019 Choco exchanged 20,000 shares of its $2 par value common stock for all of the outstanding shares of Cake. Choco's, stock on that date has a fair value (=market price) of $32 per share. Assuming that these two companies retained their separate legal identities. 1) Prepare a journal entry for acquisition in Choco's book on 12/31/19. (3 points): NEED TO POST TO WORKSHEET in 6). Account name Debit Credit 2) Show calculation of goodwill gain on bargain purchase at the date of the acquisition (on 12/31/19). (4 points) 6) Prepare a consolidation worksheet to prepare Balance sheet as of December 31, 2019 after the acquisition transaction is completed. Must complete (1)-(16) and consolidation entries S and A should be posted for full credit. Also show your work on separate table provided in page 4 for full credit. (16 points) Balance Sheet Choco Cake Consolidated Entries Consolidated Totals Debit Credit Cash and receivable (1) $30,000 (7) Inventory 240,000 90,000 (8) Investment in Cake. (2) 0 (9) Land 120,000 108,000 (10) Building 480,000 336,000 (11) (12) Goodwill 0 0 Total assets (3) (13) (70,000) Accounts payable Long-term debt $564,000 (100,000) (32,000) (72,000) (12,000) (170,000 (70,000) (38,000) Common stock (4) (14) Additional paid-in capital (5) (15) Retained earnings, 12/31 (6) (348,000) (16) Total liabilities and equity (3) $(564,000) (13) The following are preliminary financial statements for Choco Co. and Cake Co. for the year ending December 31, 2019 prior to Choco's acquisition of Cake. On 12/31/2019 Choco exchanged 20,000 shares of its $2 par value common stock for all of the Verizon 18% 5:22 PM A chegg.com Question: The following are preliminary financial statements for Choc... 3. The following are preliminary financial statements for Choco Co. and Cake Co. for the year ending December 31, 2019 prior to Choco's acquisition of Cake. Cash and Receivable Inventories Land Building Accounts payable Long-term debt Common stock Additional paid in capital Retained earnings 12/33/19 Revenues Expenses Choco Book Values 120,000 240,000 120,000 480,000 70,000 38,000 192,000 96,000 564,000 360,000 240,000 Cake Book Values 30,000 90,000 108,000 336,000 100,000 32,000 72,000 12,000 348,000 228,000 132,000 Cake Fair Values 30,000 96,000 130,000 350,000 100,000 32,000 On 12/31/2019 Choco exchanged 20,000 shares of its $2 par value common stock for all of the outstanding shares of Cake. Choco's, stock on that date has a fair value (=market price) of $32 per share. Assuming that these two companies retained their separate legal identities. 1) Prepare a journal entry for acquisition in Choco's book on 12/31/19. (3 points): NEED TO POST TO WORKSHEET in 6). Account name Debit Credit 2) Show calculation of goodwill gain on bargain purchase at the date of the acquisition (on 12/31/19). (4 points) 6) Prepare a consolidation worksheet to prepare Balance sheet as of December 31, 2019 after the acquisition transaction is completed. Must complete (1)-(16) and consolidation entries S and A should be posted for full credit. Also show your work on separate table provided in page 4 for full credit. (16 points) Balance Sheet Choco Cake Consolidated Entries Consolidated Totals Debit Credit Cash and receivable (1) $30,000 (7) Inventory 240,000 90,000 (8) Investment in Cake. (2) 0 (9) Land 120,000 108,000 (10) Building 480,000 336,000 (11) (12) Goodwill 0 0 Total assets (3) (13) (70,000) Accounts payable Long-term debt $564,000 (100,000) (32,000) (72,000) (12,000) (170,000 (70,000) (38,000) Common stock (4) (14) Additional paid-in capital (5) (15) Retained earnings, 12/31 (6) (348,000) (16) Total liabilities and equity (3) $(564,000) (13) The following are preliminary financial statements for Choco Co. and Cake Co. for the year ending December 31, 2019 prior to Choco's acquisition of Cake. On 12/31/2019 Choco exchanged 20,000 shares of its $2 par value common stock for all of the