The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31,
The next are preliminary monetary statements for Black Co. and Blue Co. for the yr ending December 31, 20X1 previous to Black's acquisition of Blue.Black co Blue CoSales 360,000 228,000Bills (240,000) (132,000)Web earnings 120,000 96,000Retained earnings 1/1/11 480,000 252,000Web earnings (from above) 120,000 96,000Dividends paid (36,000) 0Retained earnings 12/31/11 564,000 348,000Present property 360,000 120,000Land 120,000 108,000Constructing (internet) 480,000 336,000Whole property 960,000 564,000Liabilities 108,000 132,000Frequent Inventory 192,000 72,000Add'l paid-in capital 96,000 12,000Retained earnings 12/31/11 564,000 348,000Whole Liab & Inventory. Fairness 960,000 564,000On December 31, 20X1 (subsequent to the previous statements), Black exchanged 10,000 shares of its $10 par worth widespread inventory for the entire excellent shares of Blue. Black's inventory on that date has a good worth of $60 per share. Black was keen to concern 10,000 shares of inventory as a result of Blue's land was appraised at $204,000. Black additionally paid $14,000 to a number of attorneys and accountants who assisted in creating this mixture.Required:Assuming that these two corporations retained their separate authorized identities, put together a consolidation worksheet as of December 31, 20X1 after the acquisition transaction is accomplished.