Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Assets Pencil Company Book Value $ 217,000 402,000 $619,000 $ 90,000 290,000 239,000 $ 619,000 Total Assets Liabilities and Stockholders' Equity Fair Value $ 217,000 402,000 PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Total Liabilities and Stockholders' Equity Required: Prepare a consolidated balance sheet immediately following the acquisition. 90,000 Stylus Corporation Book Value Fair Value $ 52,000 124,000 $ 52,000 124,000 $ 176,000 $70,000 52,000 54,000 $ 176,000 70,000 Summi
Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Assets Pencil Company Book Value $ 217,000 402,000 $619,000 $ 90,000 290,000 239,000 $ 619,000 Total Assets Liabilities and Stockholders' Equity Fair Value $ 217,000 402,000 PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Total Liabilities and Stockholders' Equity Required: Prepare a consolidated balance sheet immediately following the acquisition. 90,000 Stylus Corporation Book Value Fair Value $ 52,000 124,000 $ 52,000 124,000 $ 176,000 $70,000 52,000 54,000 $ 176,000 70,000 Summi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $74,200 cash. Summarized balance sheet
data for the companies on December 31, 20X2, follow:
Cash
Other Assets
Total Debits
Current Liabilities
Common Stock
Retained Earnings
Total Credits
Assets
Pencil Company
Book Value
$ 217,000
402,000
$ 619,000
Total Assets
Liabilities and Stockholders' Equity
$ 90,000
290,000
239,000
$ 619,000
Fair Value
$ 217,000
402,000
PENCIL COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
January 2, 20X3
Total Liabilities and Stockholders' Equity
Required:
Prepare a consolidated balance sheet immediately following the acquisition.
90,000
Stylus Corporation
Book Value
$ 52,000
124,000
$ 176,000
$70,000
52,000
54,000
$ 176,000
Fair Value
$ 52,000
124,000
70,000
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