PREPARE A CONSOLIDATED BALANCE SHEET

Subject: Business / Accounting

GAGA BIEBER
CASH 500000 15000
ACCOUNTS RECEIVABLE 400000 3000
LAND 500000 80000
EQUIPMENT 400000 45000
A/D EQUIPMENT 10000 5000
TOTAL ASSETS 1790000 138000
ACCOUNTS PAYABLE 300,000 40,000
COMMON STOCK 10 PAR 400000 30000
ADDITIONAL PAID IN CAPITAL 300000 30000
RETAINED EARNINGS 790,000 38,000

On January 2nd 2016 GAGA purchased all of the outstanding shares of BIEBER BY ISSUING 1000 SHARES OF ITS STOCK WHICH HAS A $60 MARKET PRICE PER SHARE At this time BIEBER’S LAND WAS WORTH $55000 AND ITS EQUIPMENT WITH A 5 YEAR LIFE WAS WORTH $10,000. IN ADDITION, BIEBER HAD A CUSTOMER LIST WITH A 10 YEAR LIFE WORTH $19000 ANY EXCESS IS ATTRIBUTABLE TO GOODWILL. GAGA HAS DECIDED THAT BIEBER WILL CONTINUE TO EXIST.

Required:

A) MAKE THE JOURNAL ENTRY GAGA MAKES WHEN IT ISSUES ITS SHARES TO ACQUIRE BIEBER

B) MAKE THE JOURNAL ENTRY BIEBER MAKES WHEN ITS OWNERS EXCHANGE THEIR BIEBER SHARES FOR GAGA SHARES

C) PREPARE A CONSOLIDATED BALANCE SHEET ON JANUARY 3RD

D) MAKE ANY NECESSARY WORKSHEET ENTRIES NEEDED TO PREPARE THE BALANCE SHEET


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