Requirements included in the assigment

Starerrenrs of lncome and Net Sales lnterest Revenue Total Revenue Cost of Goods Sold Gross Margin

_

Operating Expenses lnterest Expense lncome Tax Expense Total Expenses

Net lncome

Beginning Retained Earnings Less: Dividends

Ending Retained Earnings

Retained Earnings 1,000,000

10,000 1,010,000

625,000 385,000

160,000 45,000

,72,AOO 277,AO0

108,000

550,000

-63d0-390,000 160,000

75,000 35,000 20,000

1q0,0.q0

30,000

The December 31 ,2A1A, currqnt fair values of Starr Company's identifiable assets and liabilities were the same aS their carrying amounts, except for the assets listed below,

6s,000 100,0Pq - (25,000) (10,000)

148,000 120,000 @@

Bmk

Value

lnventories Plant Assets (net) Patent (netX5 yr. life)

Fair

Value 1U3Ub1A 1ilX1t810 130,000 'r20,000 320,000 250,000 35,000 25,000

REQUIRED:\. Prepare the required journal entries to record the business com bination at December 31 , zUA.

REQUIRED: Prepare the December 31,2010 required elimination entry and post this entry to a "Consolidated Balance Sheet Workpapef' you create. Prepare a Consolidated Balance Sheet at December 31, 2010 in good form.

10,000 70,000