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Compute the consolidated common stock account at December 31, 2021? The financial statements for Campbell, Inc., and Newton Company for the year ended December 31,
Compute the consolidated common stock account at December 31, 2021?
The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Newton $ 700 Campbell $2,600 1,880 $ 720 400 $ 300 $ 500 300 0 $ 800 Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends Retained earning, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net) Total assets Liabilities Common stock $ $2,400 720 (270) $2,850 $ 240 1,200 2,700 2,100 $6,240 $1,500 230 360 650 1,300 $2,540 $ 720 400 1,080 810 620 Additional paid-in capital Retained earnings Total liabilities & stockholders' equity 800 2,850 $6,240 $2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share. In connection with the business combination, Campbell paid $25 to a broker for arranging the transaction and $30 in stock issuance costs. At the time of the transaction, Newton's equipment was actually worth $1,450 but its buildings were only valued at $590. Compute the consolidated common stock account at December 31, 2021Step by Step Solution
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