Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me find the Retained Earnings 12/31. Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included

Please help me find the Retained Earnings 12/31. image text in transcribed
image text in transcribed
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 Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm 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 $ 354,750 242,250 482,500 720,000 837,500 242,800 (352,000) (189,000) (1,132,500) (660,000) Sol Company Book Values Fair Values 12/31 12/31 5 56,700 $ 56,700 312,000 312,000 174,080 229,900 194,000 171,200 332,000 395,300 252,000 290,800 (152,000) (152,000 (54,500) (54,500) (532,500) (532,500) (70,000) (422,500) (1,800, 800) 947,000 (210,000) (90,000) (260,000 (354,700) 333,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22.400 as well as $10,000 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 Land Buildings and equipment Franchise agreements Goodwill 712,400 891,200 1,232,800 532,800 $ $ 69 91,100 Revenues $ $ $ Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 1,000,000 350,000 969,400 422,500 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fire Extinguisher Log Book

Authors: Arahan Khan

1st Edition

B09TZKR5Z4, 979-8428924282

More Books

Students also viewed these Accounting questions

Question

When would you classify an investment as available-for-sale (AFS)?

Answered: 1 week ago

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago