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Celistia Corporation paid $2,950,000 for Dawn Corporation's voting common shares on January 2, 2006, and Dawn was dissolved. The purchase price consisted of 100,000 shares

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Celistia Corporation paid $2,950,000 for Dawn Corporation's voting common shares on January 2, 2006, and Dawn was dissolved. The purchase price consisted of 100,000 shares of Celistia $10 par common stock with a market value of $2,000,000, plus $950,000 cash. In addition, Celistia paid $50,000 for registering securities and $100,000 for other costs of the combination. Balance sheet information for the two companies is as follows: Celistia Dawn Book Value Fair Value Cash Accounts Receivable Notes Receivable Inventories Other Current Assets Land Buildings Equipment Total Assets Book Value $3,000 $1,300 $1,500 $2,500 $700 $2,000 $9,000 $10,000 $30,000 $240 $360 $300 $240 $360 $300 $420 $A $190 $100 $600 $1,100 $800 $625 $250 $3,000 $3,600 $310 $700 $1,000 $600 $400 $3,000 $310 $650 Accounts Payable Mortgage Payable Capital Stock Other Paid in Capital Retained Earnings Total Liab. And SE Required A) Goodwill Situation $1,000 $5,000 $10,000 $8,000 $6,000 $30,000 1) Compute the goodwill from the acquisition 2) Prepare journal entries for Celistia Corporation to record its acquisition of Prepare joumal res fr esn of Dawn Corporation. 3) Prepare a post-acquisition Balance Sheet. B) Bargain Purchase Situation (maybe): Assume that the company only paid $500,000 in cash. 1) Compute the goodwill from the acquisition 2) Prepare journal entries for Celistia Corporation to record its acquisition of Dawn Corporation. 3) Prepare a post-acquisition Balance Sheet. Celistia Corporation paid $2,950,000 for Dawn Corporation's voting common shares on January 2, 2006, and Dawn was dissolved. The purchase price consisted of 100,000 shares of Celistia $10 par common stock with a market value of $2,000,000, plus $950,000 cash. In addition, Celistia paid $50,000 for registering securities and $100,000 for other costs of the combination. Balance sheet information for the two companies is as follows: Celistia Dawn Book Value Fair Value Cash Accounts Receivable Notes Receivable Inventories Other Current Assets Land Buildings Equipment Total Assets Book Value $3,000 $1,300 $1,500 $2,500 $700 $2,000 $9,000 $10,000 $30,000 $240 $360 $300 $240 $360 $300 $420 $A $190 $100 $600 $1,100 $800 $625 $250 $3,000 $3,600 $310 $700 $1,000 $600 $400 $3,000 $310 $650 Accounts Payable Mortgage Payable Capital Stock Other Paid in Capital Retained Earnings Total Liab. And SE Required A) Goodwill Situation $1,000 $5,000 $10,000 $8,000 $6,000 $30,000 1) Compute the goodwill from the acquisition 2) Prepare journal entries for Celistia Corporation to record its acquisition of Prepare joumal res fr esn of Dawn Corporation. 3) Prepare a post-acquisition Balance Sheet. B) Bargain Purchase Situation (maybe): Assume that the company only paid $500,000 in cash. 1) Compute the goodwill from the acquisition 2) Prepare journal entries for Celistia Corporation to record its acquisition of Dawn Corporation. 3) Prepare a post-acquisition Balance Sheet

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