The Porter Company purchased 100% of the common stock of Sam Company by paying $300,000 cash.
The book values of the net assets are the same as their fair values. (5 points)
Sam Company s balance sheet showed the following:
Cash
$ 100,000
Receivables
Accounts Payable
50,000
100,000
Equipment
Notes Payable
300 000
150,000
Common Stock
Retained Earnings
120,000
180,000 Prepare the necessary consolidation entry(s) if consolidated financial statements are prepared on
the date ofacquisition