Please do P1-28

a chapter 1 Required Company? $5, What was Plumb's book value of the total What amount did Plumb report as its investment in Stew after the d. What impact did the transfer of assets and accounts payable have on the amount reporte e What number of shares of war value stock did Stew issue to Plumb? the consolidated entity reported a shares outstanding? What impact did the transfer of assets and accounts payable have on the amount that Plumb and Plumb as total assets? on August 31, 20X3. Seed's fair value 20 1-5 Acquisition in Multiple Steps acquire 85 percent of the common stock of Seed P1-27 Peal Corporation issued 4,000) shares of its SIO par value stock with a market value of $85,000 to mon stock for $9,000 on January 31, 20XT, and had carried this investment at fair value on its was determined to be $100,000 on that date. Per purchased 15 percent of Seed's com- ately prior to acquiring the remaining 85 percent of Seed's shares. On August 31, 20X3, Peal also paid appraisal fees of $3.500 and stock issue costs of $2,000 incurred in completing the acquisition balance. Peal reported this investment at $15,000 on its balance sheet at August 31. 20X3, inmedi- of the additional shares. 1-5 Required Give the journal entries to be recorded by Peal in completing the acquisition of the additional shares of Seed P1-28) Journal Entries to Record a Business Combination On January 1, 20X2, Prost Company acquired all of SKK Corporation's assets and liabilities by issuing 24,000 shares of its $4 par value common stock. At that date, Prost shares were selling at $22 per share. Historical cost and fair value balance sheet data for SKK at the time of acquisition were as follows: Fair Value Advanced Study Guide .com Historical Cost Balance Sheet Item $ 28,000 122,000 470,000 Inesely $ 28,000 94,000 600,000 (240,000 $482,000 $620,000 08/18 Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Notes Payable Common Stock ($10 par value) Retained Earnings Total Liabilities & Equities $ 41.000 63,000 $ 41,000 65,000 160,000 216.000 $482,000 Prost paid legal fees for the transfer of assets and liabilities of $14,000. Prost also paid audit fees $21,000 and listing application fees of $7,000, both related to the issuance of new shares. Required Prepare the journal entries made by Prost to record the business combination. P1-29 Recording Business Combinations Plint Corporation exchanged shares of its $2 par common stock for all of Sark Company's a and liabilities in a planned merger. Immediately prior to the combination, Sark's assets and lia ties were as follows