On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $180,700 cash. Just before the acquisition, the balance sheets of the two companies were as follows:     Prunce   Sun Cash   $282,130   $ 59,040 Accounts receivable (net)   142,020   24,810 Inventory   118,670   53,230 Plant and equipment (net)   395,640   92,960 Land   62,550   29,220    Total asset   $1,001,010   $259,260           Accounts payable   $106,440   $ 50,420 Mortgage payable   67,320   37,660 Common stock, $2 par value   421,400   76,960 Other contributed capital   217,440   21,970 Retained earnings   188,410   72,250    Total equities   $1,001,010   $259,260 The fair values of Sun Company’s assets and liabilities are equal to their book values with the exception of land.             (a)     Your answer is correct.     Prepare a journal entry to record the purchase of Sun Company’s common stock. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit                         (b) Prepare a consolidated balance sheet at the date of acquisition. (Round answers to 0 decimal places, e.g. 125. List assets in order of liquidity.) PRUNCE COMPANY AND SUBSIDIARY Consolidated Balance Sheet  January 2, 2014For the Year Ended January 2, 2014For the Quarter Ended January 2, 2014 Assets       $                                       Current Assets    Current Liabilities    Expenses    Intangible Assets    Liabilities    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Revenues    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Expenses    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Revenues    Total Stockholders' Equity         $   Liabilities and Stockholders' Equity  Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity             $               Current Assets    Current Liabilities    Expenses    Intangible Assets    Liabilities    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Revenues    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Expenses    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Revenues    Total Stockholders' Equity            Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity                                           Current Assets    Current Liabilities    Expenses    Intangible Assets    Liabilities    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Revenues    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Expenses    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Revenues    Total Stockholders' Equity               Current Assets    Current Liabilities    Expenses    Intangible Assets    Liabilities    Long-term Investments    Long-term Liabilities    Net Income / (Loss)    Property, Plant and Equipment    Revenues    Stockholders' Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Expenses    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Revenues    Total Stockholders' Equity

Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. 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 $ 58,300 $ 22,000 Accounts Receivable 109,000 49,000 Inventory 144,000 79,000 Land 73,000 36,000 Buildings & Equipment 426,000 266,000 Less: Accumulated Depreciation (166,000) (75,000) Investment in Smart Corporation 97,300   Total Assets $ 741,600 $ 377,000 Accounts Payable $ 142,500 $ 26,000 Mortgage Payable 331,100 233,000 Common Stock 68,000 39,000 Retained Earnings 200,000 79,000 Total Liabilities & Stockholders’ Equity $ 741,600 $ 377,000 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…

Pritano Company acquired all the net assets of Succo Company on December 31, 2013, for $2,185,400 cash. The balance sheet of Succo Company immediately prior to the acquisition showed:     Book value   Fair value Current assets   $ 871,440   $871,440 Plant and equipment   1,025,090   1,437,590 Total   $1,896,530   $2,309,030           Liabilities   $194,060   $207,670 Common stock   484,800     Other contributed capital   632,900     Retained earnings   584,770     Total   $1,896,530     As part of the negotiations, Pritano agreed to pay the stockholders of Succo $356,690 cash if the post-combination earnings of Pritano averaged $2,185,400 or more per year over the next two years. The estimated fair value of the contingent consideration was $143,480 on the date of the acquisition.             (a) Prepare the journal entry on the books of Pritano to record the acquisition on December 31, 2013. (If no entry is required, select…

On January 1, 2013, Peach Company issued 1,390 of its $20 par value common shares with a fair value of $62 per share in exchange for the 1,820 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,752, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows:     Peach Company   Swartz Company Cash   $71,250   $13,190 Accounts receivable (net)   99,260   20,070 Inventory   63,300   26,980 Plant and equipment (net)   99,340   39,970 Land   27,990   21,440    Total assets   $361,140   $121,650           Accounts payable   $64,130   $16,800 Notes payable   85,460   20,800 Common stock, $20 par value   108,400   36,400 Other contributed capital   58,280   23,800 Retained earnings   44,870   23,850    Total equities   $361,140   $121,650 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.…