Acc291 Principles of Accounting: E13-12 Lennon Corporation acquires 100% of Ono Inc

Acc291 Principles of Accounting

E13-12

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 Corporation Ono 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

580,000 270,000

Instructions

Prepare a worksheet for a consolidated balance sheet.
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