Reference no: EM132630715

Question - 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 $ 89,000/ $ 32,000- Inventory 152,000/ 365,000- Buildings & Equipment (net) 448,000 /82,000 -Investment in Saloon Builders 196,000 -Total Assets $ 885,000 /$ 479,000 -Current Liabilities $ 95,000/ $ 108,000- Long-Term Debt 397,000/ 196,000- Common Stock 184,000 /138,000 -Retained Earnings 209,000 /37,000- Total Liabilities & Stockholders' Equity $ 885,000 /$ 479,000. At the date of the business combination, Saloon's cash and receivables had a fair value of $30,000, inventory had a fair value of $372,000, and buildings and equipment had a fair value of $98,000.

Required -

a. What are consolidating entries needed for 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. What is the 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. What is the consolidated balance sheet? Record the excess value (differential) reclassification entry.