Pot Incorporated acquired all Seed Incorporated's outstanding $25 par common stock on December 31, 20X3, in...

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Pot Incorporated acquired all Seed Incorporated's outstanding $25 par common stock on December 31, 20X3, in exchange for 41,000 shares of its $25 par common stock. Pot's common stock closed at $57.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts (below). Assets Cash Accounts and Other Receivables Inventories Land Depreciable Assets (net) Investment in Seed Incorporated Long-Term Investments and Other Assets Total Assets Liabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long-Term Debt Common Stock, $25 Par Value Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity Pot Incorporated $ 834,000 2,148,000 2,319,000 669,000 4,575,000 2,735,500 873,000 $ 14,153,500 $ 2,455,000 1,889,000 3,212,000 1,332,500 Seed Incorporated $ 348,000 852,000 1,045,000 305,000 1,990,000 396,000 $ 4,936,000 $ 1,128,000 1,295,000 1,025,000 176,000 1,312,000 5,265,000 $ 14,153,500 $ 4,936,000 Additional Information 1. Pot uses the equity-method of accounting for its investment in Seed. 2. On December 31, 20X3, Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $527,500. Seed had no land transactions in 20X4. 3. On June 15, 20X4, Seed paid a cash dividend of $5 per share on its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $272,000 on its common stock. 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was: Common Stock Additional Paid-In Capital Retained Earnings Pot Incorporated $ 2,187,000 1,660,000 4,060,000 $ 7,907,000 Seed Incorporated $ 1,025,000 176,000 934,000 $ 2,135,000 6. The 20X4 net income amounts according to the separate books of Pot and Seed were $894,000 (exclusive of equity in Seed's earnings) and $583,000, respectively. Required: Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December 31, 20X4. A formal consolidated balance sheet is not required Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting 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. earnings) and $583,000, respectively. Required: Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December 31, 20X4. A formal consolidated balance sheet is not required Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting 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. Assets Cash Accounts and other receivables Inventory Land Depreciable assets (net) POT INCORPORATED AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20x4 Pot Incorporated $ 834,000 Seed Incorporated Consolidation Entries Consolidated Debit Credit $ 834,000 Investment in Seed Incorporated Long-term investments and other assets $ 834,000 $ 0 $ 0 $ 0 $ 834,000 Total Assets Liabilities and Stockholders' Equity Accounts payable and other current liabilities Long-term debt Common stock Additional Paid-in capital Retained earnings Total Liabilities and Equity $ 0 $ 0 $ 0 $ 0 $ 0 Pot Incorporated acquired all Seed Incorporated's outstanding $25 par common stock on December 31, 20X3, in exchange for 41,000 shares of its $25 par common stock. Pot's common stock closed at $57.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts (below). Assets Cash Accounts and Other Receivables Inventories Land Depreciable Assets (net) Investment in Seed Incorporated Long-Term Investments and Other Assets Total Assets Liabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long-Term Debt Common Stock, $25 Par Value Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity Pot Incorporated $ 834,000 2,148,000 2,319,000 669,000 4,575,000 2,735,500 873,000 $ 14,153,500 $ 2,455,000 1,889,000 3,212,000 1,332,500 Seed Incorporated $ 348,000 852,000 1,045,000 305,000 1,990,000 396,000 $ 4,936,000 $ 1,128,000 1,295,000 1,025,000 176,000 1,312,000 5,265,000 $ 14,153,500 $ 4,936,000 Additional Information 1. Pot uses the equity-method of accounting for its investment in Seed. 2. On December 31, 20X3, Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $527,500. Seed had no land transactions in 20X4. 3. On June 15, 20X4, Seed paid a cash dividend of $5 per share on its common stock. 4. On December 10, 20X4, Pot paid a cash dividend totaling $272,000 on its common stock. 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was: Common Stock Additional Paid-In Capital Retained Earnings Pot Incorporated $ 2,187,000 1,660,000 4,060,000 $ 7,907,000 Seed Incorporated $ 1,025,000 176,000 934,000 $ 2,135,000 6. The 20X4 net income amounts according to the separate books of Pot and Seed were $894,000 (exclusive of equity in Seed's earnings) and $583,000, respectively. Required: Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December 31, 20X4. A formal consolidated balance sheet is not required Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting 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. earnings) and $583,000, respectively. Required: Prepare a consolidated balance sheet worksheet for Pot and its subsidiary, Seed, for December 31, 20X4. A formal consolidated balance sheet is not required Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting 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. Assets Cash Accounts and other receivables Inventory Land Depreciable assets (net) POT INCORPORATED AND SUBSIDIARY Consolidated Balance Sheet Worksheet December 31, 20x4 Pot Incorporated $ 834,000 Seed Incorporated Consolidation Entries Consolidated Debit Credit $ 834,000 Investment in Seed Incorporated Long-term investments and other assets $ 834,000 $ 0 $ 0 $ 0 $ 834,000 Total Assets Liabilities and Stockholders' Equity Accounts payable and other current liabilities Long-term debt Common stock Additional Paid-in capital Retained earnings Total Liabilities and Equity $ 0 $ 0 $ 0 $ 0 $ 0