On January 1, 2011, Lennon Corporation acquires 100% of Ono Inc. for $220,000 in cash.The condensed balance sheets of the two corporations immediately following the acquisition are as follows.
|
Lennon |
Ono |
|
|
Corporation |
Inc. |
|
|
Current assets |
$ 60,000 |
$ 50,000 |
|
Investment in Ono Inc. common stock |
220,000 |
|
|
Plant and equipment (net) |
300,000 |
220,000 |
|
$580,000 |
$270,000 |
|
|
Current liabilities |
$180,000 |
$ 50,000 |
|
Common stock |
230,000 |
80,000 |
|
Retained earnings |
170,000 |
140,000 |
Instructions
Prepare a worksheet for a consolidated balance sheet.