Problem
Jim Company acquired 100 percent of the common stock of John Company on January 1, 2021. Immediately following the acquisition, Jim and John had the following shareholders' equity accounts:
|
|
Jim
|
John
|
|
Common stock
|
300,000
|
200,000
|
|
Additional Paid-in Capital
|
200,000
|
250,000
|
|
Retained Earnings (1/1/2021)
|
300,000
|
150,000
|
|
Total SE
|
800,000
|
600,000
|
What are the shareholder equity accounts of the consolidated company based on the consolidated worksheet prepared on the date of acquisition? Explain your answer.