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REVIEW That you want to do 21 1 Normal No Spac. Heading 1 Heading 2 Title Subtitle Paragraph Styles 2 3 4 5 6 2. On 12/31, Choco acquired Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share. Cake will remain incorporated, Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Cash and Receivable Inventories Land Building and equipment Patented technology Accounts payable Long-term debt Common stock Additional paid in capital Retained earnings 12/31 Revenues Expenses Choco Book Values 350,000 250,000 700,000 600,000 100,000 300,000 0 750,000 500,000 450,000 350,000 310,000 Cake Book Values 180,000 100,000 120,000 600,000 0 120,000 400,000 300,000 60,000 120,000 160,000 130,000 Cake Fair Values 170,000 150,000 240,000 900,000 60,000 150,000 350,000 01. Prepare journal entry for acquisition in Choco's book. RI 99+ Word Table Tools eview View Help PDF Pro 10 Design Layout Tell me what you want to do cod| 1 No Spac. Heading 1 Heading 2 1 Normal Title Sul Paragraph Styles 2 34 Q5. Prepare consolidation Entry S. Q6. Prepare consolidation Entry A. Q7. Prepare a worksheet to consolidate Choco's and Cake's balance sheet: Balance Sheet Choco Cake Consolidated Entries bebit Credit Consolidated Totals $324.000 Cash and receivable Inventory Investment in Cake 250,000 1,280,000 $180,000 100,000 0 Land 700,000 120,000 Building and Equipment 600.000 600,000 lass-1 - Word Table Tools ings Review View Help PDF Pro 10 Design Layout Tell me what you want to do ) * Normal 1 No Space Heading 1 Heading 2 Title Subtitle Subtle Em Paragraph 1 4 Styles 0 Q7. Prepare a worksheet to consolidate Choco's and Cake's balance sheet. Balance Sheet Choco Cake Consolidated Entries Debit Consolidated Totals Credit $324.000 Cash and receivable Inventory Investment in Cake $180.000 100.000 250.000 1.280,000 0 Land 120,000 700,000 600,000 100.000 Building and Equipment Patented technology Goodwill 600.000 0 0 0 Total asses Accounts payable Long term debe Common stock Additional paid in capital $3254,000 (300,000) 0 (1.350,000) (1,168,0001 $1.000.000 (120,000) 1400,000) (300,000) (60,000) (435.000) (120.000) Retained earnings, 12/31 Total abies and equity 53.254.000) $1,000,000) O

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