Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $413,000. At the date of combination, Square reported the following: Assets Cash Inventory Buildings (net) Liabilities $ 121,000 Current Liabilities Total 104,000 422,000 Long-Term Liabilities Common Stock Retained Earnings Total $ 75,000 226,000 115,000 231,000 $ 647,000 $ 647,000 At December 31, 20X4, the book values of Square's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $11,000 less than book value, and inventories, which had a fair value $34,000 more than book value. Required: Plaza Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $413,000. At the date of combination, Square reported the following: Assets Cash Inventory Buildings (net) Liabilities $ 121,000 Current Liabilities Total 104,000 422,000 Long-Term Liabilities Common Stock Retained Earnings Total $ 75,000 226,000 115,000 231,000 $ 647,000 $ 647,000 At December 31, 20X4, the book values of Square's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $11,000 less than book value, and inventories, which had a fair value $34,000 more than book value. Required: Plaza Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SUBJECT : Accounting
Transcribed Image Text:Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on
December 31, 20X4, for $413,000. At the date of combination, Square reported the
following:
Assets
Cash
Liabilities
$ 121,000 Current Liabilities
Inventory
104,000
Buildings (net) 422,000
Total
Long-Term Liabilities
Common Stock
Retained Earnings
Total
$ 75,000
226,000
115,000
231,000
$ 647,000
$ 647,000
At December 31, 20X4, the book values of Square's net assets and liabilities approximated
their fair values, except for buildings, which had a fair value of $11,000 less than book
value, and inventories, which had a fair value $34,000 more than book value.
Required:
Plaza Corporation wishes to prepare a consolidated balance sheet immediately following
the business combination. Prepare the consolidation entry or entries needed to prepare a
consolidated balance sheet at December 31, 20X4.
Note: If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.
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