Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I keep getting Additional paid-in-capital wrong and Retained earnings 12/31- Help is much appreciated Problem 2-25 (Algo) (LO 2-4, 2-5, 2-6a, 2-6, 2-6c) Following are
I keep getting Additional paid-in-capital wrong and Retained earnings 12/31- Help is much appreciated
Problem 2-25 (Algo) (LO 2-4, 2-5, 2-6a, 2-6, 2-6c) Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Values 12/31 602,500 Padre Company Sol Company Book Book Values Fair Values 12/31 12/31 $ 193,250 22,900 $ 72,900 228,000 369,000 0 000 369,000 190,000 242,200 765.000 765,000 195,000 166.200 765,000 271,000 340,000 249,900 (350,000) (138,000) (138,000) (119,000) ( 47,500) (995,000) (552,500) (552,500) (660,000) (210,000) (70,000) (90,000) (522,500) (251,000) (1,041,250) (352,900) 980,000 328,000 Cash Receivables Inventory Land Building and equipment (net) Pranchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Com stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses 224,000 216,000 (47,500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $108,000 in cash and issuing 17,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $24,300 as well as $10,300 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 amounts as positive values.) Accounts Amounts Inventory 844,700 Land Buildings and equipment Franchise agreements $ 931,200 $ 1,105,000 $ 473,900 $ 85,800 $ 1,041,250 Goodwill Revenues $ 1,004,300 Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 $ 522,500
Step 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