Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

 Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $150,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

Item    Blank Corporation    Faith Corporation
Assets         
Cash    $ 65,000    $ 18,000
Accounts Receivable    87,000    37,000
Inventory    110,000    60,000
Buildings and Equipment (net)    220,000    150,000
Investment in Faith Corporation Stock    150,000    
Total Assets    $ 632,000    $ 265,000
Liabilities and Stockholders’ Equity         
Accounts Payable    $ 92,000    $ 35,000
Notes Payable    150,000    80,000
Common Stock    100,000    60,000
Retained Earnings    290,000    90,000
Total Liabilities and Stockholders’ Equity    $ 632,000    $ 265,000
At the date of the business combination, the book values of Faith’s net assets and liabilities approximated fair value. Assume that Faith Corporation’s accumulated depreciation on buildings and equipment on the acquisition date was $30,000.

Required:
Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.

Prepare a consolidated balance sheet worksheet.

 

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