Question
1)Prior to being united in a business combination, P Inc. and S Corp. had the following assets figures: Account P Inc. S Corp. Cash 400,000
1)Prior to being united in a business combination, P Inc. and S Corp. had the following assets figures:
Account
P Inc.
S Corp.
Cash
400,000
0
Account Receivable
150,000
100,000
Inventory
50,000
50,000
Equipment
75,000
150,000
Total Assets
675,000
300,000
Current Liabilities
75,000
50,000
Bonds Payable
250,000
0
Common Stock
50,000
100,000
Retained Earnings
300,000
150,000
Total Liabilities and Equity
675,000
300,000
Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Volkerson.
Assume that P Inc. acquired 100% of the net assets of S corporation through apurchase. The purchase price was $250,000.You are required to prepare the Journal entries of the asset acquisition in the books of P Inc.
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Accounting Information For Business Decisions
Authors: Loren A Nikolai, Billie Cunningham, John D Bazley
3rd Edition
1111066884, 9781111066888
