The following book and fair values were available for Beech Company as of June 1: Items...
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The following book and fair values were available for Beech Company as of June 1: Items Inventory Land Buildings Trademarks Common stock Accounts payable Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 817,500 2,005,000 $ 363,500 1,087,500 2,314,750 0 (128,500) 868,500 (128,500) (2,000,000) 0 (500,000) 0 (424,500) 0 (482,500) 307,000 0 0 Alder Company pays $4,050,000 cash and issues 22,800 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,500, and Alder pays $44,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. The following book and fair values were available for Beech Company as of June 1: Items Inventory Land Buildings Trademarks Common stock Accounts payable Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 817,500 2,005,000 $ 363,500 1,087,500 2,314,750 0 (128,500) 868,500 (128,500) (2,000,000) 0 (500,000) 0 (424,500) 0 (482,500) 307,000 0 0 Alder Company pays $4,050,000 cash and issues 22,800 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,500, and Alder pays $44,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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Alder Company Journal Entries to Record Acquisition of Beech Date June 1 or closing date of the acqu... View the full answer
Related Book For
Fundamentals Of Advanced Accounting
ISBN: 9781266268533
9th International Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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