Please answer the attached problems. all relevant material is attached as well. Thank you!
Template Post Problem 1 Statutory Merger SEC Registration Fee SEC Registration legal fees Finder's fee Merger legal fees Merger accounting fees 20,000 20,000 6,000 2,000 4,000 52,000 stock issue stock issue merger merger merger Carl Corporation General Ledger Cash 80,000 Plant 300,000 Liabilities 80,000 Merger Expense Cash Accounts Receivable Paid in Capital Cash Investment in Lin Company Common Stock Paid in Capital Inventory 80,000 Land 20,000 Investment in Lin Co. Capital Stock 10,000 Paid in Capital 190,000 0 Cash Accounts receivable Plant Goodwill Liabilities Investment in Lin Co. Computation of Goodwill Fair Value of Consideration transferred Book value of Lin Co. Excess fair value over book Allocated to plant Goodwill Goodwill Merger Expense 30,000 Retained Earnings 200,000 Assets Cash Accts. Rec. Inventory Plant Land Goodwill Total Carl Corporation Balance Sheet Liabilities and Equity Liabilities Capital Stock Paid in capital Retained earnings Total C. CONSOLIDATION WORKSHEET P CORPORATION AND S CO. WORKING PAPER FOR CONSOLIDATED BALANCE SHEET 6/30/200X P Corporation Assets Cash Inventories Other Assets Investment in S Plant Goodwill Total Assets S Company Eliminations & Adjustments Debit Credit debit credit debit debit Liabilities & Equity Current Liabilities Long Term Debt Common Stock $5 par Common Stock $10 par Paid In Capital Retained Earnings Total Liabilities & Equity debit debit debit Consolidated P CORPORATION CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 200X Assets Liabilities and Equity Cash Current Liabilities Inventory Long Term debt Other Assets Plant Common Stock 5 Par Paid In Capital Goodwill Retained Earnings Total Total ADVANCED ACCOUNTING UNIT 2 POST PROBLEM 1 - MERGER On June 30, 200X Carl Corporation purchased Lin Company by issuing 50,000 shares of stock. Stock has a market value of $15.00 per share. This acquisition is to be recorded as a statutory merger through asset acquisition. In this type of business combination Carl company acquires all the assets and liabilities of Lin Company. Lin Company is dissolved and goes out of business. Prepare the entries the purchase and combination on June 30, 200X. Following information is shown prior to the merger activity being recorded: Carl Company Assets Cash Inventories Plant Land Total Liabilities and Capital $ 80,000 80,000 300,000 20,000 $480,000 Current Liabilities $ 80,000 Common Stock $5PV Additional Paid in Capital Retained Earnings Total 10,000 190,000 200,000 $480,000 Lin Company Assets Liabilities and Capital Cash Accounts Receivable Plant Assets $200,000 20,000 530,000 Total $750,000 Current Liabilities Common Stock $10PV Additional Paid in Capital Retained Earnings Total $100,000 150,000 400,000 100,000 $750,000 Other information: The Lin Company Plant Assets fair market value is $600,000. The out of pocket costs of the merger are: SEC Registration Statement fee Legal fees for the SEC Registration Statement Accounting fees for the SEC Registration Statement Finders Fee Legal fees for the merger Accounting fees for the merger $20,000 $15,000 $ 5,000 $ 6,000 $ 2,000 $ 4,000 1. Prepare and post the entries to record this as a statutory merger. In a statutory merger permanent dissolution of the subsidiary occurs at the combination date. 2. Prepare an after merger balance sheet. ADVANCED ACCOUNTING UNIT 2 POST PROBLEM - SEPARATE SUBSIDIARY On June 30, 200X P paid $375,000 cash for 100% of the Common Stock of S Company. The transaction is an acquisition of wherein the acquired company is not dissolved. S Company is maintained as a separate subsidiary of P Company. It is still an entity, but in this case P Company owns all of it's stock. Following information is shown prior to acquisition being recorded: P Company Assets Cash Inventories Plant Assets 590,000 Total Liabilities and Capital $580,000 60,000 340,000 Current Liabilities Common Stock $5PV Additional Paid in Capital Retained Earnings $980,000 Total $90,000 100,000 200,000 $980,000 S Company Assets Inventories Other Assets Plant Assets Liabilities and Capital $ 20,000 40,000 140,000 Current Liabilities $30,000 Long Term Liabilities 50,000 Common Stock $10 PV 40,000 Additional Paid in Capital 20,000 Total $200,000 Retained Earnings Total 60,000 $200,000 Differences between identifiable net assets of S Company were: Inventories Plant Current Fair Value $50,000 250,000 Book Value $20,000 140,000 Difference $30,000 110,000 A. Prepare the journal entries showing the purchase B. Prepare a schedule showing the amount of goodwill from this purchase. C Prepare a consolidation worksheet showing the eliminations. D. Prepare a consolidated balance sheet AS OF June 30, 200X using the consolidation worksheet as a basis
