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Saved Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3,282,000 cash...

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Saved Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3,282,000 cash...

Saved Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3,282,000 cash for 100 percent of th
Accounts payable Long-ter debt Common stock Additional paid-in capital Retind min Total Liabilities and equities (329.000 (3.


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work Seyco 2.600.000 682,000 1 Carrying out acquared Excess fair value to buildings undervalued) to licensing agreements (ove
(329, 000) (3.470.000) (3.000.000) As payable Long-ter debt Connon stock Additional paid-in capital Retained caminte Total li


On January 1, 2021, Casey Corporation exchanged $3,282,000 cash for 100 percent of the outstanding voting stock of Kennedy Co
immediately after closing the transaction Casey and Kennedy prepared the following postacquisition balance sheets from their
A paidan capital Retained eaming Total liabilities and equities UUUUU 0 (6.000,00 (12.799.000) (1.000.000 (500,000) (1.100,00
Saved Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3,282,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information Systems At the acquisition date, Casey prepared the following fair value allocation schedule: Fair value of Kennedy (consideration transferred) 3.282.000 Carrying out acquired 2. 600,000 Excela fair value 682.000 to buildings undervalued) 353,000 to licensing agreements Covervalued) (128, 000) 225.000 to coodwill indefinite life) 457.000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Casey 441.000 1. 255,000 1. 270.000 3.282.000 5.597,500 Accounts Cash Accounts receivable Innentory Inwestnent in Kennedy Buildings (net) Licensing agreements Goodwill Total art Accounts payable Long-term debt Cannon stock Additional paidan capital Retained eaming Total liabilities and equities Kennedy 174,000 323,000 992.000 0 1.880,000 3.010,000 0 6.379.000 (399.000) (3.380.000) (1.000.000) (500.000) I. IOD, 000) (6.379.000) $ $ 963.500 12.799.000 (329.000) (3.470,000) 03.000.000) $ $ (6.000.0002 (12.799.000) $
Accounts payable Long-ter debt Common stock Additional paid-in capital Retind min Total Liabilities and equities (329.000 (3.470.000) (3.000.000) 0 (6.000.000) (12.799, 000) $ (399.000 (3.180,000 0.000, 000) (500, 000) (L. 100, 000) $(6.379.000) $ Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required.combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Consolidated CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim. Casey Kennedy Debit Credit Cash $ 441,000 $ 174,000 Accounts receivable 1.255,000 323,000 Inventory 1,270,000 992,000 Investment in Kennedy 3,282,000 Buildings (net) 5,587,500 1.880,000 Licensing agreements 3,010,000 Goodwill 963,500 Total assets $ 12,799,000 $ 6,379,000 Accounts payable s (329,000) (399,000) Long-term debt (3 470,000) (3,380,000) Common stock (3,000,000) (1.000.000) Additional paid in capital (500,000) Retained earnings (6,000,000 (1.100,000 Total liabilities and equities $(12,799,000$ (6,379,000)
Connect -mheducation.com/ext/map/index.html?_con=con&external browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com work Saved Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2021, Casey Corporation exchanged $3,282,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3.282.000 Carrying amount acquired 2. 600,000 Excess fair value $ 682.000 to buildings (undervalued) 353,000 to licensing agreements (overvalued) (128.000) 225.000 to goodwill (indefinite life) $ 457.000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total asets Accounts payable Casey 441.000 1. 255,000 1.270.000 3.282.000 5. 507.500 0 963, 500 12.799.000 (329, 000) (3.470.000) Kennedy 174.000 323.000 992. 000 0 1.800,000 3.010,000 0 6, 379.000 (399,000) (3 380,000) $ $ $ $
work Seyco 2.600.000 682,000 1 Carrying out acquared Excess fair value to buildings undervalued) to licensing agreements (overvalued) to goodw. 11 (indefinite life) 353.000 (128, 000) 225,000 457.000 $ Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses) $ $ Accounts Cash Accounts receivable Inventory Investment in Kennedy Building (net) Licensing agreements Goodwill Total assets Accounts payable Long-tern debt Common stock Additional paid-in capital Retained earings Total liabilities and equities Casey 441,000 1,255,000 1. 270.000 3.282.000 5.587,500 0 963.500 12,799,000 (329.0000 (3.470, 000) (3.000.000) 0 (6.000.000) (12.799,000) Kennedy 174.000 323.000 992, 000 0 1.880.000 3.010.000 D 6.379.000 (399.000) (3.380,000) (1.000.000) (500,000) (1.100.000) (6.379.000) $ $ $ $ $ $ Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust. & Elim
(329, 000) (3.470.000) (3.000.000) As payable Long-ter debt Connon stock Additional paid-in capital Retained caminte Total liabilities and equities (399, 000) 13.380.000 (1,000,000) (500.000) (1.100.000) (6.379.000) (6.000.000 $ (12.799, 000) $ Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust & Elim Casey Kennedy Debit Credit Consolidated Cath $ 441.000 $ 174,000 Accounts receivable 1,255,000 323 000 Inventory 1,270.000 992,000 Investment in Kennedy 3,282,000 Buildings (net) 5,587,500 1.800.000 Licensing agreements 3,010,000 Goodwill 963,500 Total assets $ 12,799,000 6.379,000 0 Accounts payable $ (329,000) (399,000) Long-term debt (3.470,000) (3,380,000) Coron stock (3.000.000) (1,000,000) Additional pald-in capital (500.000) Retained ang (6.000.000) 11.100.000) Total abilities and equires 5(12,799.000) $ (6.379.000) S DS OS
On January 1, 2021, Casey Corporation exchanged $3,282,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems At the acquisition date. Casey prepared the following fair-value allocation schedule: Pour value of Kennedy (consideration transferred) $ 3.282,000 Carrying amount acquired 2.800,000 Excese fair value 682.000 to huldings (undervalued) 353,000 to licensing agreements Covervalued) (128.000) 225.000 to goodwill indefinite life) 457.000
immediately after closing the transaction Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses) Accounts $ Kennedy 174.000 323, 000 992,000 1.890.000 3, 010.000 Accounts receivable Iwwentory Investment in Kennedy Buildings (net) Licensing agreements Good Total assets Accounts payable Long-tendebt Ccmon stock Additional paid-in capital Retained eamings Total liabilities and equities Casey 441.000 1. 255,000 1. 270.000 3.282.000 5.587,500 0 963.500 12,799,000 (329, 000) (3.470,000) (3.000.000) 0 (6.000.000 (12,799, 000) 3 $ $ 6.379.000 (399.000) (3.380,000) (1.000.000) (500.000) (1, 100.000) (6, 379, 000) $ $
A paidan capital Retained eaming Total liabilities and equities UUUUU 0 (6.000,00 (12.799.000) (1.000.000 (500,000) (1.100,000) (6.379.000) Prepare an acquisition date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (For accounts where multiple consolidation entries are required.combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Consolidated CASEY CORPORATION AND CONSOLIDATED SUBSIDIARY KENNEDY Worksheet for a Consolidated Balance Sheet January 1, 2021 Adjust & Elim. Casey Kennedy Debat Credit Cash $ 441.000 3 174.000 Accounts receivable 1.255,000 323,000 Inventory 1,270,000 992.000 Investment in Kennedy 3,282,000 Buildings (net) 5,587,500 1,880,000 Licensing agreements 3,010 000 Goodwill 963,500 Total assets $ 12,799,000 $ 6,379,000 Accounts payable $ (329.000) (399,000) Long-term debt (3.470,000) (3,380,000) Common stock (3,000,000) (1,000,000) Additional paid in capital (500,000 Retained earnings (6,000,000) (1.100,000) Total liabilities and equities S(12,799,000) $ (6.379.000) S

Answers

Consolidated Balance Sheet
Adjust & Elim.
Accounts Casey Kennedy Debit Credit Consolidated
Cash                                  441,000                 174,000               615,000
Accounts Receivable                              1,255,000                 323,000            1,578,000
Inventory                              1,270,000                 992,000            2,262,000
Investment in Kennedy                              3,282,000                             -            3,282,000                           -  
Buildings (net)                              5,587,500              1,880,000              353,000            7,820,500
Licensing agreements                                             -                3,010,000              128,000            2,882,000
Goodwill                                  963,500                             -                457,000            1,420,500
    Total assets                            12,799,000              6,379,000              810,000          3,410,000         16,578,000
Accounts payable                               (329,000)               (399,000)             (728,000)
Long-term debt                            (3,470,000)           (3,380,000)         (6,850,000)
Common Stock                            (3,000,000)           (1,000,000)          1,000,000         (3,000,000)
Additional paid-in capital                                             -                 (500,000)              500,000                           -  
Retained earnings                            (6,000,000)           (1,100,000)          1,100,000         (6,000,000)
    Total liabilities and equities                         (12,799,000)           (6,379,000)          2,600,000                         -         (16,578,000)
NOTES:
1. The account balances for cash, accounts receivables, inventory, accounts payable have been added to arrive the consolidated totals.
2. The investment in Kennedy is $0 because distributed carrying amount acquired for $2600000 & excess fair value of $682000
3. The balances of common stock, additional paid in capital & retained earnings stands as balance of parent company only.


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