Jean Inc and John Inc had the following balance sheets on August 31, 2019: ...
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Jean Inc and John Inc had the following balance sheets on August 31, 2019:
| Jean Inc. | John Inc. | John Inc. | |
| (carrying value) | (carrying value) | (fair value) | |
| Cash | $1,200,000 | $300,000 | $300,000 |
| Accounts Receivable | $ 400,000 | $ 64,000 | $ 64,000 |
| Inventory | $ 240,000 | $ 80,000 | $ 60,000 |
| Plant and Equipment (net) | $ 860,000 | $256,000 | $300,000 |
| Trademark | $ 20,000 | $ 36,000 | |
| Total Assets | $2,700,000 | $720,000 | |
| Accounts Payable | $1,500,000 | $300,000 | $300,000 |
| Bonds Payable | $ 600,000 | $240,000 | $210,000 |
| Common Shares | $ 500,000 | $ 60,000 | |
| Retained Earnings | $ 100,000 | $120,000 | |
| Total Liabilities and Equity | $2,700,000 | $720,000 |
On August 31, 2019, Jean's date of acquisition, Jean Inc. purchased 90% of John Inc. for cash consideration of $400,000. Assuming the above balance sheets were prepared immediately before the acquisition, prepare Jean Inc's consolidated balance sheet on the date of acquisition using the Proportionate Consolidation Method.
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