Problem - Alpha acquired 100% of Beta's common stock for $400,000. On this date the Fair Market Value of some of Beta's assets and liabilities were:
Land $180,000
Building $50,000
Bonds Payable $75,000
Prepare a consolidation workpaper at the date of acquisition based upon the following book values at the date:
Elimination Entries
Alpha Beta Debit Credit Consolidated
Current Assets 800,000 340,000
Land 200,000 150,000
Building 600,000 90,000
Investment in Beta 400,000 -
- -
- -
- -
Total Debits 2,000,000 580,000
Current Liabilities 600,000 200,000
Bonds Payable 200,000 80,000
Accumulated Depreciation 250,000 60,000
Common Stock 150,000 100,000
Paid in Capital 250,000 -
Retained Earnings 550,000 140,000
Total Credits 2,000,000 580,000