On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance...

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On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance...

On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows:

	Playoff Corp.			Series Company
Item				Book Value			Fair Value
Cash		$	32,000		$	22,000		$	22,000
Accounts Receivable			36,000			16,000			16,000
Inventory			94,000			27,000			32,000
Buildings & Equipment (net)			131,000			54,000			74,000
Investment in Series Stock			155,000
Total		$	448,000		$	119,000		$	144,000
Accounts Payable		$	12,000		$	4,000		$	4,000
Bonds Payable			144,000			13,000			13,000
Common Stock			49,000			10,000
Retained Earnings			243,000			92,000
Total		$	448,000		$	119,000		$	17,000

Required:
a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Series Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

business accounting

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Answer 1

Answer #1

Answer Page. No @ Consolidated entries Initial investment in series stock = $156,000 Book value of common tofock plus vretain

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Answer 2

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On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance...

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