Refer to the information given below.

Refer to the information given below.

 

a.	The August 31 balance shown on the bank statement is $9,790.
b.	There is a deposit in transit of $1,271 at August 31.
c.	Outstanding checks at August 31 totaled $1,905.
d.	Interest credited to the account during August but not recorded on the company's books amounted to $114.
e.	A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, its amount was not known until the bank statement arrived.
f.	In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $630 had been recorded as a disbursement of $373.
g.	The August 31 balance in the general ledger Cash account, before reconciliation, is $9,334.

Required:

Prepare a bank reconciliation as of August 31 from the above information: (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

 

Balance per bank		$		Balance per books		$
Add:	Deposit in transit			Add: interest revenue
Less:	Outstanding chcks			Less:	Bank charges
						Error of checks
Reconciled balance		$		Reconciled balance		$

 

On January 1, 2013, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. Pinnacle plans to maintain Strata as a wholly owned subsidiary with separate legal status and accounting information systems.

On January 1, 2013, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. Pinnacle plans to maintain Strata as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, Pinnacle prepared the following fair-value allocation schedule:

   

Fair value of Strata (consideration transferred)				$	3,200,000
Carrying amount acquired					2,600,000
Excess fair value				$	600,000
to buildings (undervalued)	$	300,000
to licensing agreements (overvalued)		(100,000)			200,000
to goodwill (indefinite life)				$	400,000

Immediately after closing the transaction, Pinnacle and Strata prepared the following postacquisition balance sheets from their separate financial records.

Accounts	Pinnacle				Strata
Cash	$	433,000			$	122,000
Accounts receivable		1,210,000				283,000
Inventory		1,235,000				350,000
Investment in Strata		3,200,000				0
Buildings (net)		5,572,000				1,845,000
Licensing agreements		0				3,000,000
Goodwill		350,000				0
Total assets	$	12,000,000			$	5,600,000
Accounts payable		(300,000	)			(375,000	)
Long-term debt		(2,700,000	)			(2,625,000	)
Common stock		(3,000,000	)			(1,000,000	)
Additional paid-in capital		0				(500,000	)
Retained earnings		(6,000,000	)			(1,100,000	)
Total liabilities and equities	$	(12,000,000	)		$	(5,600,000	)

Note: Parentheses indicate a credit balance.

Prepare a January 1, 2013, consolidated balance sheet for Pinnacle Corporation and its subsidiary Strata Corporation. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values.)

PINNACLE COMPANY AND CONSOLIDATED SUBSIDIARY STRATA Consolidated Balance Sheet  January 1, 2013
Assets		Liabilities and Owners' Equity
Cash	$	Accounts payable	$
Accounts receivable		Long-term debt
Inventory		Common stock
Buildings (net)		Additional paid-in capital
Licensing agreements		Retained earnings
Goodwill
Total assets	$	Total liabilities and equities	$

Explanation:

PINNACLE COMPANY AND CONSOLIDATED SUBSIDIARY STRATA Worksheet for a Consolidated Balance Sheet January 1, 2013
Accounts	Pinnacle			Strata			Adjust. & Elim.				Consolidated
Cash		433,000			122,000						555,000
Accounts receivable		1,210,000			283,000						1,493,000
Inventory		1,235,000			350,000						1,585,000
Investment in Strata		3,200,000			0				(S)	2,600,000
									(A)	600,000	0
Buildings (net)		5,572,000			1,845,000		(A)	300,000			7,717,000
Licensing agreements		0			3,000,000				(A)	100,000	2,900,000
Goodwill		350,000			0		(A)	400,000			750,000
Total assets		12,000,000			5,600,000						15,000,000
Accounts payable		(300,000	)		(375,000	)					(675,000)
Long-term debt		(2,700,000	)		(2,625,000	)					(5,325,000)
Common stock		(3,000,000	)		(1,000,000	)	(S)	1,000,000			(3,000,000)
Additional paid-in capital		0			(500,000	)	(S)	500,000			0
Retained earnings		(6,000,000	)		(1,100,000	)	(S)	1,100,000			(6,000,000)
Total liabilities and equities		(12,000,000	)		(5,600,000	)		3,300,000		3,300,000	(15,000,000)

The consolidation entries are designed to:

•	Eliminate the stockholders’ equity accounts of the subsidiary (S)
•	Record all subsidiary assets and liabilities at fair value (A)
•	Recognize the goodwill indicated by the acquisition fair value (A)
•	Eliminate the Investment in Strata (S, A)