Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash

image text in transcribed
image text in transcribed
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Acerued expenses Longterm liabilities Common stock-620 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Sol Company Book Book Values Values Fair Values 12/31 12/31 12/31 $ 510,750 45,400 $ 45,400 277,500 369,000 369,000 487,500 243,000 297,800 607,500 164,000 137,500 830,000 301.000 370,300 316,000 275,000 309,200 (388,000) (146,000) (146,000) (125,000) (33,000) (33,000) (1,102,500) (610,000) (610,000) (660,000) (210,000) (70,000) (90,000) (630,000) (280,000) (1,037,750) (383,400) 984,000 355,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $140,000 in cash and issuing 17,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,700 as well as $6,700 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Amounts Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid.in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Compensation And Benefits Programs

Authors: Kelli W. Vito

1st Edition

0894136720, 978-0894136726

More Books

Students also viewed these Accounting questions

Question

How would you build intellectual capital? Explain

Answered: 1 week ago