Answered step by step
Verified Expert Solution
Question
1 Approved Answer
#3 Pintime Industries Incorporated entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure on uninterrupted supply of key raw materiols ond
#3
Pintime Industries Incorporated entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure on uninterrupted supply of key raw materiols ond to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the ogreement, Pintime issued 182,000 shares of its $1 por common stock in exchange for all of SCC's ossets and liabilities. The Pintime shares then were distributed to SCC's shareholders, ond SCC wos liquicoted. Immediately prior to the combination, SCC's bolance sheet oppeored os follows, with fair volues aiso indicoted: Immediately prior to the combination. Fintime's common stock was selling for \$14 per shere. Pintime incurred direct costs of $145.000 in orranging the business combinotion and $49.000 of costs agsocioted with registering snd issuing the common stock used in the combinotion: Required: a. Prepore oll journel entries thet Pintime should heve entered on its books to record the business combination. Note: If no entry is required for a transactiontevent, select "No youmal entry required" in the first account fieid. b. Prepore oll joufnol entries that should hove been entered on SCC's books to record the combination and the distrbution of the stock received. Note : 0 = journal entry has been enterea b. Prepore all journal entries that should hove been entered on 5CC b books to record the combination and the distribution of the stock received. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the sale of assets and liabilities. a Record the retirement of Treasury Stock. c. Record the retirement of 5scc stock and distribution of Pintime Industries stockStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started