Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also Included are fair values for Sol Company accounts. Cash Receivables Sol Company Padre Company Book Book Values Items Values 12/31 $ 158,000 274, 500 12/31 $ 70, 500 Fair Values 12/31 $ 70, 500 305,000 305,000 Inventory 582, 500 267,000 Land 710,000 221,000 323, 100 192,500 Building and equipment (net) 665,000 299,000 363, 300 Franchise agreements 277,000 256,000 287, 300 Accounts payable (339,000) (156,000) (156,000) Accrued expenses (148,000) (42, 500) (42,500) Long-term liabilities (940, 000) (607, 500) (607, 500) Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues (660,000) 0 0 0 (210,000) 0 (70,000) (90,000) 0 (450,000) (290,000) 0 Expenses (1,038, 000) 978,000 (343, 500) 321,000 0 Note: Parentheses Indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $154,000 in cash and issuing 16,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,300 as well as $10,600 in stock Issuance costs. Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also Included are fair values for Sol Company accounts. Cash Receivables Sol Company Padre Company Book Book Values Items Values 12/31 $ 158,000 274, 500 12/31 $ 70, 500 Fair Values 12/31 $ 70, 500 305,000 305,000 Inventory 582, 500 267,000 Land 710,000 221,000 323, 100 192,500 Building and equipment (net) 665,000 299,000 363, 300 Franchise agreements 277,000 256,000 287, 300 Accounts payable (339,000) (156,000) (156,000) Accrued expenses (148,000) (42, 500) (42,500) Long-term liabilities (940, 000) (607, 500) (607, 500) Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues (660,000) 0 0 0 (210,000) 0 (70,000) (90,000) 0 (450,000) (290,000) 0 Expenses (1,038, 000) 978,000 (343, 500) 321,000 0 Note: Parentheses Indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $154,000 in cash and issuing 16,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,300 as well as $10,600 in stock Issuance costs. Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts
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Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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