Pint Enterprises acquired 100 percent of Saloon Builders’ stock on December 31, 20X4. Balance sheet data for Pint and Saloon on January 1, 20X5, are as follows: Pint Enterprises Saloon Builders Cash and Receivables $ 84,000 $ 35,000 Inventory 162,000 363,000 Buildings & Equipment (net) 446,000 80,000 Investment in Saloon Builders 209,000 Total Assets $ 901,000 $ 478,000 Current Liabilities $ 92,000 $ 92,000 Long-Term Debt 398,000 195,000 Common Stock 183,000 130,000 Retained Earnings 228,000 61,000 Total Liabilities & Stockholders’ Equity $ 901,000 $ 478,000 At the date of the business combination, Saloon’s cash and receivables had a fair value of $33,000, inventory had a fair value of $370,000, and buildings and equipment had a fair value of $93,000.

Required:

a. Prepare all consolidating entries needed to prepare a consolidated balance sheet on January 1, 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Complete a consolidated balance sheet worksheet. (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.)

c. Prepare a consolidated balance sheet.

Answer rating: 100% (QA)

Consolidation entry Debit Credit Cash and Receivables Inventory Bldg and equipment To Lo... View the full answer