I need the TWO Problems below completed. I have attached the excel document that was provided by my teacher that MUST be filled out with the answers. Thank you!

Problem 1-5 (LO 3, 4) Revaluation of assets

Jack Company is a corporation that was organized on July 1, 2015. The June 30, 2020, balance sheet for Jack is as follows:

Assets

Investments $ 400,500

Accounts receivable $1,250,000

Allowance for doubtful accounts (300,000) 950,000

Inventory 1,500,000

Prepaid insurance 18,000

Land 58,000

Machinery and equipment (net) 1,473,500

Goodwill 100,000

Total assets $4,500,000

Liabilities and Equity

Current liabilities $1,475,000

Common stock ($10 par) 1,200,000

Retained earnings 1,825,000

Total liabilities and equity $4,500,000

The experience of other companies over the last several years indicates that the machinery and equipment can be sold at 130% of its book value.

An analysis of the accounts receivable indicates that the realizable value is $925,000. An independent appraisal made in June 2020 values the land at $70,000. Using the lower-of-cost-or-market rule, inventory is to be restated at $1,200,000.

Calway Corporation plans to exchange 18,000 of its shares for the 120,000 Jack shares. During June 2020, the fair value of a share of Calway Corporation is $270. Acquisition costs are $12,000.

The stockholders? equity account balances of Calway Corporation as of June 30, 2015, are as follows: Common stock ($10 par) $2,000,000

Paid-in capital in excess of par 580,000

Retained earnings 2,496,400

Total stockholders? equity $5,076,400

Required Record the acquisition of Jack Company by Calway on July 1, 2020. Use value analysis to support the acquisition entries.

Problem 1-6 (LO 3, 4) Cash purchase with goodwill Tweeden Corporation is contemplating the acquisition of the net assets of Sylvester Corporation in anticipation of expanding its operations. The balance sheet of Sylvester Corporation on December 31, 2015, is as follows:

Sylvester Corporation

Balance Sheet

December 31, 2015

Current assets:

Notes receivable $ 24,000

Accounts receivable 56,000

Inventory 31,000

Other current assets 18,000

Total current assets $129,000

Investments 65,000

Fixed assets:

Land $ 32,000

Building 245,000

Equipment 387,000

Total fixed assets 664,000

Intangibles:

Goodwill $ 45,000

Patents 23,000

Trade names 10,000

Total intangibles 78,000

Total assets $936,000

Current liabilities: Accounts payable $ 45,000

Payroll and benefit-related liabilities 12,500

Debt maturing in one year 10,000

Total current liabilities $ 67,500

Other liabilities:

Long-term debt $248,000

Payroll and benefit-related liabilities 156,000

Total other liabilities 404,000

Stockholders? equity:

Common stock $100,000

Paid-in capital in excess of par 250,000

Retained earnings 114,500

Total equity 464,500

Total liabilities and equity $936,000

An appraiser for Tweeden determined the fair values of Sylvester?s assets and liabilities to be as shown on next page.

Assets

Notes receivable $ 24,000

Accounts receivable 56,000

Inventory 30,000

Other current assets 15,000

Investments 63,000

Land 55,000

Building 275,000

Equipment 426,000

Goodwill ?

Patents 20,000

Trade names 15,000

Liabilities

Accounts payable $ 45,000

Payroll and benefit-related liabilities?current 12,500

Debt maturing in one year 10,000

Long-term debt 248,000

Payroll and benefit-related liabilities?long-term 156,000

The agreed-upon purchase price is $580,000 in cash. Acquisition costs paid in cash total $20,000.

Required

Using the above information, do value analysis and prepare the entry on the books of Tweeden Corporation to acquire the net assets of Sylvester Corporation on December 31, 2015.

Name of Company Being Acquired Date of Acquisition Jack Company June 30, 2020 Book Fair Value Current Assets and Investments Investments Accounts Receivable (net) Inventory Prepaid Insurance Total Current Assets and Investments - - Total Fixed Assets Intangibles Goodwill - - Total Intangibles Total Assets - - Purchase Price Cash Number of Shares exchanged Par Value of a share of stock Market Value of a share of stock Market Value of stock exchanged Total Purchase Price - Value Analysis Total Price Paid Total Fair Value of Net Assets Goodwill Gain on Purchase of Business - Fixed Assets Land Machinery and Equipment Entry Account Name Investments Accounts Receivable (net) Debit (Credit) - Inventory Prepaid Insurance Land Machinery and Equipment Goodwill Current Liabilities Cash Common Stock Paid-in-Capital in Excess of Par Goodwill Gain on Purchase of Business CHECK - Book Fair Value Current Liabilities Current Liabilities Total Current Liabilities Other Liabilities - - Total Other Liabilities Total Liabilities Stockholders' Equity Common Stock Paid in Capital in Excess of Par Retained Earnings Total Equity - - Total Liabilities and Equity Net Assets - - - Name of Company Being Acquired Date of Acquisition Sylvester Company December 31, 2015 Book Current Assets and Investments Notes Receivable Accounts Receivable Inventory Other Current Assets Investments Total Current Assets and Investments Fair Value - - Total Fixed Assets Intangibles Goodwill Patents Trade Names - - Total Intangibles Total Assets - - Purchase Price Cash Number of Shares exchanged Par Value of a share of stock Market Value of a share of stock Market Value of stock exchanged Total Purchase Price - Value Analysis Total Price Paid Total Fair Value of Net Assets Goodwill Gain on Purchase of Business - Fixed Assets Land Building Equipment Entry Account Name Notes Receivable Accounts Receivable Debit (Credit) - Inventory Other Current Assets Investments Land Building Equipment Goodwill Patents Trade Names Accounts Payable Payroll Liabilities Current Portion of LT Debt Long Term Debt LT Payroll Liabilities Cash Common Stock Paid-in-Capital in Excess of Par Goodwill Gain on Purchase of Business CHECK - Book Fair Value Current Liabilities Accounts Payable Payroll Liabilities Current Portion of LT Debt Total Current Liabilities Other Liabilities Long Term Debt LT Payroll Liabilities - - Total Other Liabilities Total Liabilities Stockholders' Equity Common Stock Paid in Capital in Excess of Par Retained Earnings Total Equity - - Total Liabilities and Equity Net Assets