I need Problem 2-19 Goodwill figure amount, and 2-23 and 2-24 the missing figure amounts and or information.
Problem 2-19 [LO4, LO5, LO6, LO7] 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 Buildings and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock$20 par value Common stock$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 $ 193,250 228,000 602,500 765,000 765,000 224,000 (350,000) (119,000) (995,000) (660,000) Sol Company Book Values 12/31 $ 72,900 369,000 190,000 195,000 271,000 216,000 (138,000) (47,500) (552,500) Fair Values 12/31 $ 72,900 369,000 242,200 166,200 340,000 249,900 (138,000) (47,500) (552,500) (210,000) (90,000) (251,000) (352,900) 328,000 (70,000) (522,500) (1,041,250) 980,000 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 and Sol's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Amounts $ $ $ $ $ $ $ $ $ Problem 2-23 [LO4, LO5, LO7] On January 1, 2013, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $213,350 in long-term liabilities and 20,300 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $22,400 to accountants, lawyers, and brokers for assistance in the acquisition and another $16,250 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock$1 par value Common stock$20 par value Additional paid-in capital Retained earnings, 1/1/13 Note: Parentheses indicate a credit balance. Marshall Company Book Value $ 53,000 284,000 367,000 244,000 539,000 163,000 (167,000) (508,000) (110,000) (360,000) (505,000) Tucker Company Book Value $ 20,300 97,200 143,000 178,000 240,000 64,750 (42,250) (232,000) (120,000) 0 (349,000) In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $6,800, Land by $27,150, and Buildings by $41,400. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. (Input all amounts as positive values.) Consolidated Totals Cash Receivables Inventory Land Buildings Equipment Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities $ $ $ $ . b. Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2013. (Leave no cells blank be certain to enter "0" wherever required. Enter the consolidation entries of 'Investment in Tucker Company' in order of (S) Elimination of subsidiary's stockholders' equity and (A) Allocation of Tucker's consideration fair value in excess of book value. Input all amounts as positive values except for the credit balances which should be entered with the minus sign.) MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2013 Marshall Company Accounts Cash Receivables Inventory Land Buildings (net) Equipment (net) Investment in Tucker Tucker Company Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/13 Total liabilities and owners' equities Problem 2-28 [LO4, LO5, LO6, LO7, LO8] On January 1, 2013, NewTune Company exchanges 19,633 shares of its common stock for all of the outstanding shares of Onthe-Go, Inc. Each of NewTune's shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go's fair value. NewTune also paid $45,550 in stock registration and issuance costs in connection with the merger. Several of On-the-Go's accounts have fair values that differ from their book values on this date: Receivables Trademarks Record music catalog In-process research and development Notes payable Book Values $ 62,500 105,500 75,750 0 (67,000) Fair Values $ 60,400 294,500 270,000 243,000 (61,700) Consolidation Entries Debit Credit Co Precombination January 1, 2013, book values for the two companies are as follows: Cash Receiva bles Tradem arks Record music catalog Equipm ent (net) NewT une $ Totals Account s payable Notes payable Commo n stock Additio nal paidin capital Retaine d earnings Totals On-the-Go 76,000 $ 52,750 162,000 485,000 105,500 875,000 75,750 332,000 $ 62,500 139,000 1,930,00 0 $ 435,500 $ (159,000) $ (51,500) (451,000) (67,000) (400,000) (50,000) (30,000) (30,000) (890,000) (237,000) (1,930,00 ) 0 $ (435,500) $ Note: Parentheses indicate a credit balance. a. Assume that this combination is a statutory merger so that On-the-Go's accounts will be transferred to the records of NewTune. On-the-Go will be dissolved and will no longer exist as a legal entity. Prepare a postcombination balance sheet for NewTune as of the acquisition date. (Input all amounts as positive values.) Post-Combination Balance Sheet Assets Liabilities and Owners' Equity $ Total assets b. $ $ Total liabilities and equities $ Assume that no dissolution takes place in connection with this combination. Rather, both companies retain their separate legal identities. Prepare a worksheet to consolidate the two companies as of the combination date. (Leave no cells blank be certain to enter "0" wherever required. Enter the consolidation entries of 'Investment in On-the-Go, Inc.' in order of (S) Elimination of subsidiary's stockholders' equity and (A) Allocation of On-the-Go's consideration fair value in excess of book value. Input all amounts as positive values.) NEWTUNE, INC., AND ON-THE-GO CO. Consolidation Worksheet January 1, 2013 Consolidation Entries NewTune, Inc. On-the-Go Co. Debit Credit Co nso lida ted Tot als Cash Receivable s Investment in On-theGo Trademarks Record music catalog Research and development asset Equipment Goodwill Totals Accounts payable Notes payable Common stock Additional paid-in capital Retained earnings Totals Problem 2-19 [LO4, LO5, LO6, LO7] Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Company Book Values 12/31 $ 193,250 228,000 602,500 765,000 765,000 224,000 Cash Receivables Inventory Land Buildings and equipment (net) Franchise agreements Accounts payable (350,000) Accrued expenses (119,000) Long-term liabilities (995,000) Common stock$20 par value Sol Company Book Values 12/31 $ 72,900 369,000 190,000 195,000 271,000 216,000 (138,00 ) 0 (47,500) (552,50 ) 0 Fair Values 12/31 $ 72,900 369,000 242,200 166,200 340,000 249,900 (138,00 ) 0 (47,500) (552,50 ) 0 (660,000) Common stock$5 par value Additional paid-in capital (70,000) Retained earnings, 1/1 (522,500) (1,041,25 ) 0 980,000 Revenues Expenses (210,00 ) 0 (90,000) (251,00 ) 0 (352,90 ) 0 328,000 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 and Sol's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Amounts $ 844,700 $ 931,200 $ 1,105,000 $ 473,900 $ 123,150 $ 1,394,150 $ 73,400 $ 1,004,300 $ 773,500 Problem 2-23 [LO4, LO5, LO7] On January 1, 2013, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $213,350 in long-term liabilities and 20,300 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $22,400 to accountants, lawyers, and brokers for assistance in the acquisition and another $16,250 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Company Book Value Tucker Company Book Value Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock$1 par value Common stock$20 par value Additional paid-in capital Retained earnings, 1/1/13 $ 53,000 284,000 367,000 244,000 539,000 163,000 (167,000) (508,000) (110,000) (360,000) (505,000) $ 20,300 97,200 143,000 178,000 240,000 64,750 (42,250) (232,000) (120,000) 0 (349,000) Note: Parentheses indicate a credit balance. In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $6,800, Land by $27,150, and Buildings by $41,400. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. (Input all amounts as positive values.) Consolidated Totals Cash $ 34,650 Receivables 381,200 Inventory 516,800 Land 449,150 Buildings 820,400 Equipment 227,750 Total assets $ 2,429,950 Accounts payable $ 209,250 Long-term liabilities 953,350 Common stock 130,300 Additional paid-in capital 526,450 Retained earnings 610,600 Total liabilities and equities $ 2,429,950 b. Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2013. (Leave no cells blank - be certain to enter "0" wherever required. Enter the consolidation entries of 'Investment in Tucker Company' in order of (S) Elimination of subsidiary's stockholders' equity and (A) Allocation of Tucker's consideration fair value in excess of book value. Input all amounts as positive values except for the credit balances which should be entered with the minus sign.) MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2013 Marshall Company Accounts Cash Receivables Inventory Tucker Company Consolidation Entries Consolidated Debit Credit Totals 14,350 20,300 0 0 34,650 284,000 97,200 0 0 381,200 367,000 143,000 6,800 0 516,800 Land Equipment (net) Investment in Tucker Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/13 Total liabilities and owners' equities 178,000 27,150 0 449,150 539,000 240,000 41,400 0 820,400 163,000 64,750 0 0 227,750 416,350 0 128,000 469,000 0 Buildings (net) 244,000 75,350 0 2,027,700 743,250 2,429,950 167,000 42,250 0 0 209,250 721,350 232,000 0 0 953,350 130,300 120,000 120,000 0 130,300 526,450 0 0 0 526,450 482,600 349,000 349,000 128,000 610,600 2,027,700 743,250 672,350 672,350 2,429,950 Problem 2-19 [LO4, LO5, LO6, LO7] Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Company Book Values 12/31 $ 193,250 228,000 602,500 765,000 765,000 224,000 Cash Receivables Inventory Land Buildings and equipment (net) Franchise agreements Accounts payable (350,000) Accrued expenses (119,000) Long-term liabilities (995,000) Common stock$20 par value Sol Company Book Values 12/31 $ 72,900 369,000 190,000 195,000 271,000 216,000 (138,00 ) 0 (47,500) (552,50 ) 0 Fair Values 12/31 $ 72,900 369,000 242,200 166,200 340,000 249,900 (138,00 ) 0 (47,500) (552,50 ) 0 (660,000) Common stock$5 par value Additional paid-in capital (70,000) Retained earnings, 1/1 (522,500) (1,041,25 ) 0 980,000 Revenues Expenses (210,00 ) 0 (90,000) (251,00 ) 0 (352,90 ) 0 328,000 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 and Sol's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Amounts $ 844,700 $ 931,200 $ 1,105,000 $ 473,900 $ 123,150 $ 1,394,150 $ 73,400 $ 1,004,300 $ 773,500 Problem 2-23 [LO4, LO5, LO7] On January 1, 2013, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $213,350 in long-term liabilities and 20,300 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $22,400 to accountants, lawyers, and brokers for assistance in the acquisition and another $16,250 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Marshall Company Book Value Tucker Company Book Value Cash Receivables Inventory Land Buildings (net) Equipment (net) Accounts payable Long-term liabilities Common stock$1 par value Common stock$20 par value Additional paid-in capital Retained earnings, 1/1/13 $ 53,000 284,000 367,000 244,000 539,000 163,000 (167,000) (508,000) (110,000) (360,000) (505,000) $ 20,300 97,200 143,000 178,000 240,000 64,750 (42,250) (232,000) (120,000) 0 (349,000) Note: Parentheses indicate a credit balance. In Marshall's appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary's books: Inventory by $6,800, Land by $27,150, and Buildings by $41,400. Marshall plans to maintain Tucker's separate legal identity and to operate Tucker as a wholly owned subsidiary. a. Determine the amounts that Marshall Company would report in its postacquisition balance sheet. In preparing the postacquisition balance sheet, any required adjustments to income accounts from the acquisition should be closed to Marshall's retained earnings. (Input all amounts as positive values.) Consolidated Totals Cash $ 34,650 Receivables 381,200 Inventory 516,800 Land 449,150 Buildings 820,400 Equipment 227,750 Total assets $ 2,429,950 Accounts payable $ 209,250 Long-term liabilities 953,350 Common stock 130,300 Additional paid-in capital 526,450 Retained earnings 610,600 Total liabilities and equities $ 2,429,950 b. Prepare a worksheet to consolidate the balance sheets of these two companies as of January 1, 2013. (Leave no cells blank - be certain to enter "0" wherever required. Enter the consolidation entries of 'Investment in Tucker Company' in order of (S) Elimination of subsidiary's stockholders' equity and (A) Allocation of Tucker's consideration fair value in excess of book value. Input all amounts as positive values except for the credit balances which should be entered with the minus sign.) MARSHALL COMPANY AND CONSOLIDATED SUBSIDIARY Worksheet January 1, 2013 Marshall Company Accounts Cash Receivables Inventory Tucker Company Consolidation Entries Consolidated Debit Credit Totals 14,350 20,300 0 0 34,650 284,000 97,200 0 0 381,200 367,000 143,000 6,800 0 516,800 Land Equipment (net) Investment in Tucker Total assets Accounts payable Long-term liabilities Common stock Additional paid-in capital Retained earnings, 1/1/13 Total liabilities and owners' equities 178,000 27,150 0 449,150 539,000 240,000 41,400 0 820,400 163,000 64,750 0 0 227,750 416,350 0 128,000 469,000 0 Buildings (net) 244,000 75,350 0 2,027,700 743,250 2,429,950 167,000 42,250 0 0 209,250 721,350 232,000 0 0 953,350 130,300 120,000 120,000 0 130,300 526,450 0 0 0 526,450 482,600 349,000 349,000 128,000 610,600 2,027,700 743,250 672,350 672,350 2,429,950
