Reference no: EM132644173
Question - Prepare Consolidated Balance Sheet for Big Lake Bakeries which owns 100% of Marble Falls Orchards. The fair value of Marble Falls net fixed assets are $2,675,000.
Big Lake acquired 100% of Marble Falls for 3,750,000
Fair value of fixed assets 2,675,000
Balance Sheet prior to acquistion
Big Lake Marble Falls
Current assets 4,250,000 500,000
Fixed assets, net 4,500,000 1,675,000
Liabilties 350,000 125,000
Common Stock 7,500,000 1,525,000
Paid in Capital 500,000
Retained Earnings 400,000 525,000
Required -
a. Prepare purchase entry.
b. Prepare consolidated journal entry to consolidate equity accounts.
c. Prepare consolidated journal entry to consolidate assets.