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.
