Assignment- 2) On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assignment- 2) On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2013, is as follows: Piron Seana Cash $150,000 $120,000 Inventories 320,000 400,000 Other current assets 500,000 500,000 Land 350,000 250,000 Plant assets-net 4,000,000 1,500,000 Total Assets $5,320,000 $2,770,000 Accounts payable $1,000,000 $300,000 Notes payable 1,300,000 660,000 Capital stock, $5 par 2,000,000 500,000 Additional paid-in capital 1,000,000 100,000 Retained Eamings 20,000 1,210,000 Total Liabilities & Equities $5,320,000 $2,770,000 Required: 1. Prepare Piron's general joumal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity. 2. Prepare Piron's general joumal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity. Assignment- 2) On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to register and issue shares. Piron also paid $20,000 for the direct combination costs of the accountants. The fair value and book value of Seana's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2013, is as follows: Piron Seana Cash $150,000 $120,000 Inventories 320,000 400,000 Other current assets 500,000 500,000 Land 350,000 250,000 Plant assets-net 4,000,000 1,500,000 Total Assets $5,320,000 $2,770,000 Accounts payable $1,000,000 $300,000 Notes payable 1,300,000 660,000 Capital stock, $5 par 2,000,000 500,000 Additional paid-in capital 1,000,000 100,000 Retained Eamings 20,000 1,210,000 Total Liabilities & Equities $5,320,000 $2,770,000 Required: 1. Prepare Piron's general joumal entry for the acquisition of Seana, assuming that Seana survives as a separate legal entity. 2. Prepare Piron's general joumal entry for the acquisition of Seana, assuming that Seana will dissolve as a separate legal entity.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
On January 2, 2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares. Piron paid $15,000 to...
-
You have just received a windfall from an investment you made in a friend's business. She will be paying you $34,301 at the end of this year, $68,602 at the end of next year, and $102,903 at the end...
-
Data 0.4 (exponential parameter) Results L= 0.3206442 =0.0527086 =TI 4 S= 1 (mean service rate) (#servers) W= 0.2991803 N= 3 (size of population) W = 0.0491803 Three machines are the maximum that can...
-
>> ((5.2^3-6.4^2+3) / (1.6^8-2))+((13.3)^1.5/(5))ans 12.2075MATLABIS THE ANSWER CORRECT? \( \gg\left(\left(5.2^{\wedge} 3-6.4^{\wedge} 2+3ight) /\left(1.6^{\wedge} 8-2ight)ight)+\left((13.3)^{\wedge}...
-
While checking the computations on his Form 1040, Mr. G realized he had misclassified a $10,800 expense as a business deduction on Schedule C. The expense should have been an itemized deduction on...
-
For the frame and cable of Problem 2.85, determine the components of the force exerted by the cable on the support at E. PROBLEM 2.85 A frame ABC is supported in part by cable DBE that passes through...
-
Venus Company uses a perpetual inventory system. It entered into the following calendar-year 2005 purchases and sales transactions: Required 1. Compute cost of goods available for sale and the number...
-
Block B, with mass 5.00 kg, rests on block A, with mass 8.00 kg, which in turn is on a horizontal tabletop (Fig. 5.72). There is no friction between block A and the tabletop, but the coefficient of...
-
2. The government of Canada is planning the implementation of a Pharmacare program by passing a Canada Pharmacare Act in 2023 and to develop a formulary and bulk purchasing plan for essential...
-
Millennials spent a mean of $163 per month on dining in 2018. Source: Data extracted from Shop Tutors, Inc., bit.ly/2S4xWzg. Assume that the amount spent on dining per month is normally distributed...
-
Describethe marketing mix (product, price, place, and promotion) and its use when planning an event. Identify and share at least 2 marketing platforms an event manager can use to gain traffic or...
-
Explore the use of nested narratives or stories-within-stories in texts like "The Canterbury Tales" by Geoffrey Chaucer or "If on a Winter's Night a Traveler" by Italo Calvino. What does this...
-
The price p (in dollars) and the demand x for a particular clock radio are related by the equation x = 5000 - 50p. (A) Express the price p in terms of the demand x, and find the domain of this...
-
Investigate the role of unreliable narration in shaping the reader's interpretation of a narrative. How does this technique challenge conventional notions of truth and objectivity in works like "The...
-
A U.S. company's foreign subsidiary had these amounts in local currency units (LCU) in 2024: Cost of goods sold Beginning inventory Ending inventory LCU 5,710,000 542,000 623,000 The average exchange...
-
On August 31, Howel Company had an unadjusted cash balance of $10,050. An examination of the August bank statement shows a balance of $8,370 on August 31, bank service charges of $40, deposits in...
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
Company Z (a successful efforts company) owns 100% WI in a lease in which Dudley Smith owns a 1/8 royalty interest. Company Z conveys to Company Q 30% of the working interest in exchange for a cash...
-
Company Z owns a 100% WI in a proved property with net capitalized costs of \($100,000\). Company Z sold the lease for \($250,000\) cash and a production payment of \($150,000\), plus interest of 10%...
-
Lomax Company assigned 40% of the working interest in an unproved property with a 1/8 royalty interest to Mabel Company in return for Mabel Company bearing all costs of drilling, developing, and...
Study smarter with the SolutionInn App