Question Details

balance sheet for Pine Company and Subsidiary 




On January 2, 2013, Pine Company purchased 100% of the outstanding common shares of Seely Company for $520,000. Any excess of cost over the book value of the net assets of Seely Company should first be allocated to Land $55,000, and Buildings $40,000 and any remainder to goodwill.
Instructions
(a)	Complete the following worksheet below for preparing a consolidated balance sheet on the date of acquisition. You may add accounts to the worksheet that may be necessary.
(b)	Prepare a consolidated balance sheet for Pine Company and Subsidiary on January 2, 2013.

PINE COMPANY ANDSUBSIDIARY
Worksheet-Consolidated Balance Sheet
January 2, 2013 (Acquisition Date)
Assets	Pine 
Company	Seely 
Company	Eliminations	Consolidated      Data     
			Debits	Credits	
Current assets	120,000	$70,000			
Investment in Sneed common stock	520,000				
Land	20,000	150,000			
Buildings (net)	150,000	250,000			               
Totals	810,000	470,000			               
Liabilities and Stockholders’ Equity
Current liabilities	60,000	70,000			
Common stock-Pine	500,000				
Common stock-Seely		270,000			
Retained earnings-Pine	250,000				
Retained earnings-Seely	             	 130,000	            	            	              
Total	810,000	470,000	            	            	              




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