On December 31, 20X8, Parkway Corporation acquired 80 percent of Street Company's common stock for $104,000 cash. The fair value of the noncontrolling interest at that date was determined to be $26,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:   Parkway Corporation Street Company Cash $ 90,000 $ 20,000 Accounts Receivable 80,000 35,000 Inventory 100,000 40,000 Land 40,000 60,000 Buildings and Equipment 300,000 100,000 Less: Accumulated Depreciation (100,000) (40,000) Investment in Street Company 104,000   Total Assets $ 614,000 $ 215,000 Accounts Payable 120,000 30,000 Mortgage Payable 200,000 100,000 Common Stock 50,000 25,000 Retained Earnings 244,000 60,000 Total Liabilities and Equity $ 614,000 $ 215,000 On that date, the book values of Street's assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and buildings and equipment, which had a fair value of $100,000. At December 31, 20X8, Parkway reported accounts payable of $15,000 to Street, which reported an equal amount in its accounts receivable. Required: 1) Provide the consolidating entries needed to prepare a consolidated balance sheet immediately following the business combination. 2) Prepare a consolidated balance sheet worksheet.

Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $98,000. At that date, the fair value of the noncontrolling interest was $42,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Phone Corporation Smart Corporation Cash $ 52,300 $ 39,000 Accounts Receivable 99,000 59,000 Inventory 136,000 92,000 Land 66,000 49,000 Buildings & Equipment 417,000 268,000 Less: Accumulated Depreciation (151,000) (73,000) Investment in Smart Corporation 98,000   Total Assets $ 717,300 $ 434,000 Accounts Payable $ 141,500 $ 27,000 Mortgage Payable 300,800 288,000 Common Stock 72,000 40,000 Retained Earnings 203,000 79,000 Total Liabilities & Stockholders’ Equity $ 717,300 $ 434,000 At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…

Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $85,250 and a fair value of $102,750 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:   Peace Computer Corporation Symbol Software Company Book Value Fair Value Book Value Fair Value Cash $ 216,000 $ 216,000 $ 62,000 $ 62,000 Other Assets 406,000 406,000 137,000 137,000 Total Debits $ 622,000   $ 199,000   Current Liabilities $ 82,000 82,000 $ 62,000 62,000 Common Stock 290,000   62,000   Retained Earnings 250,000   75,000   Total Credits $ 622,000   $ 199,000   Required: Prepare a consolidated balance sheet immediately following the acquisition.

Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $310,500 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $345,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, follow: Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings and Equipment Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total Peanut Company Debit $ 174,000 181,000 211,000 353,700 206,000 707,000 187,000 41,000 220,000 89.000 $2,369,700 Credit $450,000 63,000 188,000 492,000 313,900 789,000 73.800 $2,369,700 Snoopy Company Debit $ 87,000 82,000 76,000 95,000 188,000 120,000 9,000 27,000 34,000 $718,000 Credit $18,000 48,000 69,000 196,000 149,000 238,000 0 $718,000 Required: a. Prepare any equity…

Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:   Peanut Company Snoopy Company Debit Credit Debit Credit Cash $ 130,000   $ 80,000   Accounts Receivable 165,000   65,000   Inventory 200,000   75,000   Investment in Snoopy Company 355,000   0   Land 200,000   100,000   Buildings and Equipment 700,000   200,000   Cost of Goods Sold 200,000   125,000   Depreciation Expense 50,000   10,000   Selling and Administrative Expense 225,000   40,000   Dividends Declared 100,000   20,000   Accumulated Depreciation   $ 450,000   $ 20,000 Accounts Payable   75,000   60,000 Bonds Payable   200,000   85,000 Common Stock   500,000   200,000 Retained Earnings   225,000   100,000 Sales   800,000…

Sagar

Bristle Co. acquired 75 percent of Silver Corporation's common stock on December 31, 20X8, for $300,000. The fair value of the non-controlling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances: Cash and Receivables $40,000 Inventory 70,000 Land 90,000 Buildings and Equipment (net) 250,000 Total Assets $450,000 Accounts Payable $30,000 Income Taxes Payable 40,000 Bonds Payable 100,000 Common Stock 100,000 Retained Earnings 180,000 Total Liabilities and Stockholders' Equity $450,000 A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the non- controlling shareholders. What amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition? a. $0 b. $120,000…