Balance Sheet Worksheet

Balance Sheet Worksheet

Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

	Blank	Faith
Item	Corporation	Corporation
Cash	$ 65,000	$ 18,000
Accounts Receivable	87,000	37,000
Inventory	110,000	60,000
Buildings & Equipment (net)	220,000	150,000
Investment in Faith Corporation Stock	150,000
Total Assets	$632,000	$265,000
Accounts Payable	$ 92,000	$ 35,000
Notes Payable	150,000	80,000
Common Stock	100,000	60,000
Retained Earnings	290,000	90,000
Total Liabilities & Stockholders’ Equity	$632,000	$265,000

At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $30,000.

Required

a. Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

b. Prepare a consolidated balance sheet worksheet.

Is this the question you were looking for? If so, place your order here to get started!