On January 1, 2024, Oakwood Company acquired 100 percent of the outstanding common stock of Nexus Company. To acquire these shares, Oakwood issued to the owners of Nexus $301,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Oakwood paid $22,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $7,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Oakwood Items Company Nexus Company Cash Receivables $73,500 $32,600 290,000 159,000 Inventory 445,000 219,000 འ ཅ ༤ ཐ Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities 250,000 212,000 424,000 280,000 252,000 51,000 (237,000) (64,200) (448,000) (301,000) Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 (110,000) 0 0 (120,000) (360,000) 0 (579,500) (468,400) Note: Parentheses indicate a credit balance. Oakwood's appraisal of Nexus's fair values deemed three accounts to be undervalued: Inventory by $6,600, Land by $28,400, and Buildings by $47,200. Oakwood plans to maintain Nexus's separate legal identity and to operate Nexus as a wholly owned subsidiary. Required: Prepare Oakwood journal entries to record its acquisition of Nexus, related professional fees paid, and stock acquisition costs. Separately determine each individual amount that Oakwood Company would report in its consolidated balance sheet following the acquisition of Nexus. Include in Oakwood's retained earnings any adjustments to income accounts from part (a). To verify the answers found in part (b), adjust Oakwood's column of accounts for the journal entries in part (a) and then prepare a worksheet to consolidate the balance sheets of these two companies at the acquisition date. STEP #1 No Transaction General Journal Debit Credit 1 1 2 2 3 3 Cash Receivables Accounts STEP #2 Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Mason Total assets Accounts payable Long-term liabilities Consolidated Totals $ Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ STEP #3 OAKWOOD COMPANY AND CONSOLIDATED SUBSIDIARY Nexsus Worksheet to prepare a Consolidated Balance Sheet January 1, 2024 Oakwood Company Nexsus Consolidation Entries Company Debit Credit Consolidated Totals Inventory Land Buildings (net) Equipment (net) Investment in Nexus Total assets $ 0 $ 0 $ 0 Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/24 Total liabilities and equities $ 0 $ 0 $ 0 $ 0 $ 0