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On January 1st 2019 Hulk Company and Spiderman Company had the following balance sheets HULK CO....

On January 1st 2019 Hulk Company and Spiderman Company had the following balance sheets
HULK CO. SPIDERMAN CO.
Cash 500,000 40,000
accounts receivable 500,000 10,000
inventory 500,000 50,000
equipment 500,000 100,000
accumulated dep. Equipment 100,000 10,000
building 500,000 100,000
accumulated dep. Building 100,000 10,000
total assets 2,300,000 280,000
accounts payable 100,000 50,000
common stock $1 par 2,000,000 200,000
additional paid in capital 100,000 10,000
retained earnings 100000 20,000
On January 2nd Hulk Company acquired 75% of the outstanding stock of Spiderman Company by issuing (SELLING)
200,000 shares of its common stock when the stock was worth $6 per share at this time Spiderman's
equipment is worth $110,000; its building is worth $190,000 and their customer list was worth $50,000
The building and equipment and building have a 10 year life with no salvage (AS OF 1/1/2019) and the
customer list has a 5 year life.  
REQUIRED;
A) make the journal entry Hulk makes when it acquires the stock of Spiderman
B) make the journal entry Spidermand makes when its stock is acquired by Hulk
C) make the necessary worksheet entries
D) prepare a consolidated balance sheet on January 2nd.  
business   accounting   
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Answer #1

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