Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saved Help Save Exit Submit Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values

image text in transcribed
image text in transcribed
Saved Help Save Exit Submit Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for So! 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 Sol Company Book Book Values Values Fair Values 12/31 12/31 12/31 300, 750 62,200 $ 62,200 279,000 353,000 353,000 510,000 269,000 323,100 677,500 176,000 150,900 747,500 340,000 403,600 288,000 273,000 304,200 (375,000) (185,000) (185,000) (97,000) (52,000) (52,000) (1,007,500) (590,000) (590,000) (660,000) (210,000) (70,000) (90,000) (537,500) (326,000) (1,055,750) (418,200) 1,000,000 398,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $354,000 in cash and issuing 12,600 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,400 as well as $14,100 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.) 25 (52,000) (590,000) Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses (97,000) (52,UUU) (1,007,500) (590,000) (660,000) (210,000) (70,000) (90,000) (537,500) (326,000) (1,055, 750) (418,200) 1,000,000 398,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $354,000 in cash and issuing 12,600 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,400 as well as $14,100 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.) Amounts Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 25

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

Agile Audit Transformation And Beyond

Authors: Toby DeRoche

1st Edition

1032062894, 978-1032062891

More Books

Students also viewed these Accounting questions

Question

If b = a + 3, then (a b) 4 = ? F. 81 G. 27 H. 3 J. 27 K. 81

Answered: 1 week ago

Question

=+ (a) Prove that I()(t)= fox'-1(log x)*e * dx.

Answered: 1 week ago

Question

How can the Internet be helpful in a job search? (Objective 2)

Answered: 1 week ago