Ramrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, (20 mathrm{X} 2),
Question:
Ramrod Manufacturing acquired all the assets and liabilities of Stafford Industries on January 1, \(20 \mathrm{X} 2\), in exchange for 4.000 shares of its \(\$ 20\) par value common stock. Balance sheet data for both companies just before the merger are given as follows:
Ramrod shares were selling for \(\$ 150\) on the date of acquisition.
\section*{Required}
Assuming purchase accounting is appropriate for the business combination, prepare the following:
a. Journal entries to record the acquisition on Ramrod's books.
b. A balance sheet for the combined enterprise immediately following the business combination.
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Related Book For
Advanced Financial Accounting
ISBN: 9780072444124
5th Edition
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King
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