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Winston has the following account balances as of February 1. Inventory- $ 600,000 Land- 500,000 Buildings (net) (valued at $1,000,000)- 900,000 Common stock ($10 par
Winston has the following account balances as of February 1. Inventory- $ 600,000 Land- 500,000 Buildings (net) (valued at $1,000,000)- 900,000 Common stock ($10 par value)- (800,000) Retained earnings 1/1- (1,100,000) Revenues- (600,000) Expenses- 500,000 Arlington pays $1.4 million cash and issues 10,000 shares of its $30 par value common stock (valued at $80 per share) for all of Winston's outstanding stock. Stock issuance costs amount to $30,000. Prior to recording these newly issued shares, Arlington reports a Common Stock account of $900,000 and Additional Paid-In Capital of $500,000. For each of the following accounts, determine what balance would be included in a February 1 consolidation. 1)Goodwill. 2) Expenses. 3) Retained Earnings, 1/1. 4) Buildings
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