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I have attached my assignment. I need help with it. Is there anybody out there that can help? P1-37 Journal Entries On January 1, 20x3
I have attached my assignment. I need help with it. Is there anybody out there that can help?
P1-37 Journal Entries On January 1, 20x3 Pure Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value information for the balance sheet items of Light Steel at the time of acquisition follow: Balance Sheet Item cash Accounts Receivable Inventory (LIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation total Assets Accounts Payable Bonds Payable common Stock($5 par value) Additional paid-in capital Retained Earnings Total Liabilities and Equities Book Fair value Value $60,000 $60,000 100,000 100,000 60,000 115,000 50,000 70,000 400,000 350,000 (150,000) 0 $695,00 $520,000 0 $10,000 $10,000 200,000 180,000 150,000 70,000 90,000 $520,000 Light Steel share were selling at $18 and PURE Products share were selling at $50 just before the merger announcement. Additional cash payments made by PURE Products in completing the acquisition were finder's fee paid to firm that located light Steel Audit fee for stock issued by Pure Products Stock registration fee for new share of Pure Products Legal fees paid to assist in transfer of net assets cost of SEC registration of PURE Products shares $10,00 0 3,000 5,000 9,000 1,000 Required Prepare all journal entries to record the business combination on PURE Products booksStep by Step Solution
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