On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason...

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On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $267,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $22,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $7,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Presidio Cash Receivables Inventory Land Buildings (net) Equipment (net) Items Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$28 par value Additional paid-in capital Retained earnings, 1/1/24 Company $ 68,900 277,888 Mason Company $ 38,680 91,888 411,800 192,888 215,800 224,888 501,000 276,888 228,888 58,788 (226,000) (54,380) (493,008) (267,000) (118,000) (128,000) (360,000) (495,988) (431,080) Note: Parentheses indicate a credit balance. Presidio's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $7,400, Land by $33,000, and Buildings by $42,000. Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary. Required: a. Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid, and stock acquisition costs. b. Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the acquisition of Mason. Include in Presidio's retained earnings any adjustments to income accounts from part (a). c. To verify the answers found in part (b), adjust Presidio's column of accounts for the journal entries in part (s) and then prepare s worksheet to consolidate the balance sheets of these two companies at the acquisition date. Complete this question by entering your answers in the tabs below. Required A Required B Required C To verify the answers found in part (b), adjust Presidio's column of accounts for the journal entries in part (a) and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date. Note: 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. Accounts Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Mason Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earings, 1/1/24 Totallables and equities PRESIDIO COMPANY AND CONSOLIDATED SUBSIDIARY MASON Worksheet to prepare a Consolidated Balance Sheet January 1, 2024 Precidio Company Mason Consolidation Entries Consolidated Company Debit Credit Totalc < Required B $ 0 $ 0$ Required C > Show less On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $267,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $22,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $7,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Presidio Cash Receivables Inventory Land Buildings (net) Equipment (net) Items Accounts payable Long-term liabilities Common stock-$1 par value Common stock-$28 par value Additional paid-in capital Retained earnings, 1/1/24 Company $ 68,900 277,888 Mason Company $ 38,680 91,888 411,800 192,888 215,800 224,888 501,000 276,888 228,888 58,788 (226,000) (54,380) (493,008) (267,000) (118,000) (128,000) (360,000) (495,988) (431,080) Note: Parentheses indicate a credit balance. Presidio's appraisal of Mason's fair values deemed three accounts to be undervalued: Inventory by $7,400, Land by $33,000, and Buildings by $42,000. Presidio plans to maintain Mason's separate legal identity and to operate Mason as a wholly owned subsidiary. Required: a. Prepare Presidio's journal entries to record its acquisition of Mason, related professional fees paid, and stock acquisition costs. b. Separately determine each individual amount that Presidio Company would report in its consolidated balance sheet following the acquisition of Mason. Include in Presidio's retained earnings any adjustments to income accounts from part (a). c. To verify the answers found in part (b), adjust Presidio's column of accounts for the journal entries in part (s) and then prepare s worksheet to consolidate the balance sheets of these two companies at the acquisition date. Complete this question by entering your answers in the tabs below. Required A Required B Required C To verify the answers found in part (b), adjust Presidio's column of accounts for the journal entries in part (a) and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date. Note: 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. Accounts Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Mason Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earings, 1/1/24 Totallables and equities PRESIDIO COMPANY AND CONSOLIDATED SUBSIDIARY MASON Worksheet to prepare a Consolidated Balance Sheet January 1, 2024 Precidio Company Mason Consolidation Entries Consolidated Company Debit Credit Totalc < Required B $ 0 $ 0$ Required C > Show less