On January $1,2024,$ Sendipity Inc. acquired of of the outstanding common stock of Murphy Company for $\backslash$$$540,000$ in cash.

On the date of acquisition, the recorded carrying values of Murphy Company's individual net assets were equal to their fair values except:

Accounts receivable was overvalued by $\backslash (\backslash$$ $5,000\backslash )$;

PPE was undervalued by $\backslash (\backslash$$ $100,000\backslash )$;

An unrecorded patent had a fair value of $\backslash (\backslash$$ $40,000\backslash )$;

Notes payable had a fair value $\backslash (\backslash$$ $10,000\backslash )$ above carry value.

Any remaining implied value was attributable to future synergies of the two companies operating together post$-$consolidation. Goodwill was recorded in the amount of $\backslash (\backslash$$ $75,000\backslash ).$

The following balance sheets were reported immediately after the acquisition.

Prepare the consolidated balance sheet on the date of acquisition with the following parameters:

$1.$ You must work in a team of two and create one shared document that you share with me $($during class AND in Canvas$).$ Enter names to the right!

$2.$ You must use cell references in your consolidation entries $($the Dr$.$ and Cr$.$ columns AND the Consolidated Balance Sheet Column$)$

$3.$ You must total the Dr$.$ and Cr$.$ consolidation entry columns entries, then please do so$!$

$5.$ You MUST, however, separate the two consolidation enties for the Investment in Murphy. DO NOT ENTER ONE CREDIT TO ELIMINATE MURPHY!

$6.$ Insert the necessary rows to account for additional assets, liabilities, etc. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Serendipty Inc. & & Murphy Company & $\backslash \backslash$

$\backslash$hline Balance Sheet on January $1,2024$ & & Balance Sheet on January $1,2024$ & $\backslash \backslash$

$\backslash$hline Assets & & Assets & $\backslash \backslash$

$\backslash$hline Cash & $40,000$ & Cash & $\backslash \backslash$

$\backslash$hline Accounts receivable & $110,000$ & Accounts receivable & $70,000\backslash \backslash$

$\backslash$hline Inventories & $150,000$ & Inventories & $120,000\backslash \backslash$

$\backslash$hline PPE, net & $710,000$ & PPE, net & $500,000\backslash \backslash$

$\backslash$hline Other assets & $100,000$ & Other assets & $60,000\backslash \backslash$

$\backslash$hline Investment in Murphy & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & Liabilities $\backslash$& Stockholders'Equity & $\backslash \backslash$

$\backslash$hline Liabilities $\backslash$& Stockholders' Equity & & Accounts payable & $90,000\backslash \backslash$

$\backslash$hline Accounts payable & $150,000$ & Notes payable & $200,000\backslash \backslash$

$\backslash$hline Notes payable & $500,000$ & Other liabiities & $140,000\backslash \backslash$

$\backslash$hline Other liabiities & & Common stock & $\backslash \backslash$

$\backslash$hline Common stock & $100,000$ & Retained earnings & $280,000\backslash \backslash$

$\backslash$hline Retained earnings & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$