Consolidating a wholly-owned subsidiary) Razorback Express, Inc., paid $266,000 to acquire all the common stock of Sooner
Question:
Consolidating a wholly-owned subsidiary) Razorback Express, Inc., paid $266,000 to acquire all the common stock of Sooner Corporation, and Sooner owes Razorback $81,000 on a note payable. Immediately after the purchase on September 30, 20X8, the 2 companies’ balance sheets follow.
Razorback | Sooner | |
Assets | ||
Cash | $ 24,000 | $ 20,000 |
Accounts receivable, net | 91,000 | 42,000 |
Note receivable from Sooner | 81,000 | — |
Inventory | 19,000 | 214,000 |
Investment in Sooner | 266,000 | — |
Plant assets, net | 278,000 | 219,000 |
Total | $759,000 | $495,000 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | $ 57,000 | $ 49,000 |
Notes payable | 175,000 | 149,000 |
Other liabilities | 129,000 | 31,000 |
Common stock | 150,000 | 118,000 |
Retained earnings | 248,000 | 148,000 |
Total | $759,000 | $495,000 |
Required
Prepare the consolidated balance sheet of Razorback Express (It is sufficient to complete a consolidation worksheet.
Expert Answer:
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
