Weakfish Company purchased 100% of Squeteague Company on January 1, 2020 for $950,000 by issuing 200,000 shares of its $2 par common stock. The book value of Squeteague at the time was $800,000 with the excess attributed to goodwill and equipment equally. There were direct expenses $10,000 and indirect expenses of $40,000. The purchase is an acquisition or consolidation.

a. Record the acquisition on January 1, 2020 on the books of Weakfish.

b. Assume that the balance sheets immediately after the acquisition are below. Show the elimination/consolidation entries to put them together on the worksheet. Do not extend the balances.

Weakfish Squeteague Dr. Cr. Cash $ 100,000 $ 50,000 Receivables 50,000 20,000 Investment in S. 950,000 Property & Equipment 600,000 830,000 Goodwill $1,700,000 $900,000 Liabilities Payables 250,000 $ 100,000 400,000 Capital Stock Additional Paid in Cap 500,000 800,000 Retained Earnings 150,000 $1,700,000 400.000 $ 900,000