Peace Computer Corporation acquired 90 percent of Symbol Software Company’s common stock on January 2, 20X3, by issuing preferred stock with a par value of $6 per share and a market value of $8.10 per share. A total of 10,000 shares of preferred stock was issued. Balance sheet data for the two companies immediately before the business combination are presented in Exercise E3–8.

Required

Prepare a consolidated balance sheet for the companies immediately after Peace obtains ownership of Symbol by issuing the preferred stock.

Data from Exercises 8

Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67,500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:

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Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Peace Computer Corporation Book Value $200,000 400,000 $600,000 $100,000 300,000 200,000 $600,000 Fair Value $200,000 400,000 100,000 Symbol Software Company Book Value $50,000 120,000 $170,000 $ 80,000 50,000 40,000 $170,000 Fair Value $ 50,000 120,000 80,000