On January 1, 2023, Tamarisk Company issued 1,450 of its $20 par value common shares with...

Transcribed Image Text:

On January 1, 2023, Tamarisk Company issued 1,450 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Sheffield Company in a purchase transaction. Registration costs amounted to $2,500, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Tamarisk Company Sheffield Company Cash $83,000 $12,600 Accounts receivable (net) 103,000 18,000 Inventory 56,000 25,000 Plant and equipment (net) 95,000 46,500 Land 23,500 22,000 Total assets $360,500 $124,100 Accounts payable $63,000 $19,500 Notes payable 89,500 30,000 Common stock, $20 par value 100,000 40,000 Other contributed capital 60,000 27,500 Retained earnings 48,000 7,100 Total equities $360,500 $124,100 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill. Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.) TAMARISK COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2023 Assets $ 69 $ Liabilities and Stockholders' Equity $ $ On January 1, 2023, Tamarisk Company issued 1,450 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Sheffield Company in a purchase transaction. Registration costs amounted to $2,500, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Tamarisk Company Sheffield Company Cash $83,000 $12,600 Accounts receivable (net) 103,000 18,000 Inventory 56,000 25,000 Plant and equipment (net) 95,000 46,500 Land 23,500 22,000 Total assets $360,500 $124,100 Accounts payable $63,000 $19,500 Notes payable 89,500 30,000 Common stock, $20 par value 100,000 40,000 Other contributed capital 60,000 27,500 Retained earnings 48,000 7,100 Total equities $360,500 $124,100 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill. Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.) TAMARISK COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2023 Assets $ 69 $ Liabilities and Stockholders' Equity $ $