Worksheet For a CanentLated Balance Sheet January 1, 2021 Adjust & Elim. Casey Kennedy Debit Credit Consolidated Cash 456,000 136,500 Accounts receivable 1,450,000 321,000 Inventory 1,335,000 884,500 Investment in Kennedy 3,327,000 Buildings (net) 6,060,000 2, 150,000 Licensing agreements 3,030,000 Goodwill 259,000 Total assets $ 12,887,000 $ 6,522,000 Accounts payable $ (377,000) (462,000) Long-term debt (3,510,000) (3,460,000) Common stock (3,000,000) (1,000,000) Additional paid-in capital 500,000) Retained earnings (6,000,000) (1, 100,000) Total liabilities and equities $ (12,887,000) $ (6,522,000) $ 0 $ 0 $ On January 1, 2021, Casey Corporation exchanged $3,327,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3,327,009 Carrying amount acquired 2, 600, 090 Excess fair value $ 727,090 to buildings (undervalued) $ 351,090 to licensing agreements (overvalued) (104, 090) 247, 090 to goodwill (indefinite life) $ 480, 000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Casey Kennedy Cash $ 456, 090 $ 136, 500 Accounts receivable 1, 450, 000 321, 090 Inventory 1, 335, 090 884, 500 Investment in Kennedy 3,327, 000 Buildings (net) 6, 060, 000 2, 150, 900 Licensing agreements 3, 030, 090 Goodwill 259, 000 Total assets $ 12, 887 , 000 $ 6, 522, 090 Accounts payable tA (377,000) $ (462, 000) JILLAccounts Casey Kennedy Cash $ 456, 090 $ 136, 500 Accounts receivable 1, 450, 090 321, 090 Inventory 1, 335, 090 884, 509 Investment in Kennedy 3, 327, 090 Buildings (net) 6, 060, 900 2, 150, 909 Licensing agreements 3, 030, 060 Goodwill 259 , 900 Total assets 12, 887, 090 6,522, 090 Accounts payable (090'LLE) $ (462, 000) Long-term debt (000 'OTS'E) (3,460,900) Common stock (600 '000'E) (1, 000, 090) Additional paid-in capital (500, 060) Retained earnings (6, 060, 060) (1, 100, 009) Total liabilities and equities $ (12, 887,060) $ (6,522, 060) Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim.