Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition,...
|
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition, Bower incurred $9,000 of direct costs in consummating the combination. At the time of acquisition, Lark reported the following historical cost and current market data: |
| Balance Sheet Item | Book Value | Fair Value | ||||
| Assets | ||||||
| Cash & Receivables | $ | 57,000 | $ | 57,000 | ||
| Inventory | 114,000 | 165,000 | ||||
| Buildings & Equipment (net) | 207,000 | 307,000 | ||||
| Patent | — | 203,000 | ||||
|
|
|
|
|
|
|
|
| Total Assets | $ | 378,000 | $ | 732,000 | ||
|
|
|
|
|
|
|
|
| Liabilities & Equities | ||||||
| Accounts Payable | $ | 20,000 | $ | 20,000 | ||
| Common Stock | 98,000 | |||||
| Additional Paid-In Capital | 66,000 | |||||
| Retained Earnings | 194,000 | |||||
|
|
|
|
||||
| Total Liabilities & Equities | $ | 378,000 | ||||
|
|
|
|
||||
|
|
||||||
| Required: |
|
Prepare the journal entry or entries with which Bower recorded its acquisition of Lark’s net assets. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
|
Homework Answers
Add Answer to:
Bower Company purchased Lark Corporation’s net assets on January 3, 20X2, for $632,000 cash. In addition,...
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000....
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $207,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 62,000 $ 34,000 Accounts Receivable 81,000 39,000 Inventory 103,000 75,000 Buildings and Equipment (net) 212,000 160,000 Investment in Faith Corporation Stock 207,000 Total Assets $ 665,000 $ 308,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
Plug Corporation acquired 35 percent of Spark Corporation’s stock on January 1, 20X8, by issuing 25,000...
Plug Corporation acquired 35 percent of Spark Corporation’s stock on January 1, 20X8, by issuing 25,000 shares of its $2 par value common stock. Spark Corporation’s balance sheet immediately before the acquisition contained the following items: SPARK CORPORATION Balance Sheet January 1, 20X8 Book Value Fair Value Assets Cash & Receivables $ 40,000 $ 40,000 Inventory (FIFO basis) 80,000 100,000 Land 50,000 70,000 Buildings and Equipment (net) 240,000 320,000 Total Assets $ 410,000 $ 530,000 Liabilities & Equities Accounts Payable...
1) On January 1, 20X8, Nebraska Corporation acquired Mercantile Corporation's net assets by paying $190,000 cash....
1) On January 1, 20X8, Nebraska Corporation acquired Mercantile Corporation's net assets by paying $190,000 cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below: Nebraska Mercantile Book Value Book Value Fair Value Cash $ 200,000 $ 30,000 $ 30,000 Accounts Receivable 40,000 22,000 22,000 Inventory 120,000 25,000 31,000 Patents 50,000 20,000 45,000 Buildings and Equipment 330,000 250,000 170,000 Less: Accumulated Depreciation − 140,000 − 150,000 Total...
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $214,000....
Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $214,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Blank Corporation Faith Corporation Assets Cash $ 70,000 $ 24,000 Accounts Receivable 87,000 52,000 Inventory 101,000 64,000 Buildings and Equipment (net) 218,000 159,000 Investment in Faith Corporation Stock 214,000 Total Assets $ 690,000 $ 299,000 Liabilities and Stockholders’ Equity Accounts Payable $ 84,000 $...
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20x2, for $229,000....
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20x2, for $229,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation $ 61,000 83,000 109,000 222,000 229,000 $704,000 Faith Corporation $ 33,000 57,000 65,000 168,000 Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Earnings...
Grabber Industries purchased the net assets of Easy Company for $1,300,000, comprised of $1,200,000 of cash...
Grabber Industries purchased the net assets of Easy Company for $1,300,000, comprised of $1,200,000 of cash and a contingent performance condition of $100,000. A schedule of the net assets of Easy Company, as recorded on Easy Company's books at the time of the acquisition, is as follows: Assets Cash Receivables Inventory Land, buildings, and equipment (net) Total assets S 31,000 250,000 302,000 350.000 Liabilities Current liabilities Long-term debt Total liabilities Net assets (book value) S 90,000 185,000 S 658,000 The...
23. On January 1, 2016, Milwaukee Company purchased Mi $1,200,000 cash. The fair value of Minneapolis's assets was $1,080,000, and it had liabilities of $100,000. The book value of the compa...
23. On January 1, 2016, Milwaukee Company purchased Mi $1,200,000 cash. The fair value of Minneapolis's assets was $1,080,000, and it had liabilities of $100,000. The book value of the company's assets was $980,000. Required: a) Prepare Milwaukee's journal entry to record the acquisition of Minneapolis Company b) At the end of 2018, Milwaukee concluded that the value of its goodwill (associated with the Minneapolis C l ompany acquisition of Minneapolis) had declined by $30,000. Prepare the journal entry to...
Powell Corporation paid $15 million in cash to acquire the assets and liabilities of Sloan Company....
Powell Corporation paid $15 million in cash to acquire the assets and liabilities of Sloan Company. Powell also agreed to make an additional cash payment in the future, with an expected present value of $600,000, if certain performance targets are met. Powell paid legal and consulting fees of $300,000 in cash in connection with the merger. A comparison of book and fair values of Sloan’s reported assets and liabilities follows: (in thousands) Book Value Fair Value Current assets $ 600...
Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018,...
Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts Book Values Fair Values 50,000 53,050 41,550 35,800 Current assets Building Land Trademark Goodwil1 Liabilities Common stock Retained earnings 50,000 94,250 21,750 22,000 (53,000) (100,000) (35,000) (53,000) 1&2. Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming...
3. Acquisition Method Prance Company acquired all the assets and liabilities of Seaver Company and properly...
3. Acquisition Method Prance Company acquired all the assets and liabilities of Seaver Company and properly recorded the transaction under the acquisition method. Seaver's balance sheet prior to the transaction was as follows: Book Value Fair Value A/R $ 175,000 $175,000 Inventory 465,000 500,000 20,000 20,000 Equipment Building 90,000 85,000 Land 30,000 60,000 Total Assets $ 780,000 $840.000 Accounts Payable $ 120,000 $130,000 Common Stock ($5 par) 100,000 100,000 Pald in Capital 320,000 310,000 Retained Earnings 240,000 300,000 Total Liab...
Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20x2, for $229,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation $ 61,000 83,000 109,000 222,000 229,000 $704,000 Faith Corporation $ 33,000 57,000 65,000 168,000 Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Earnings...
Grabber Industries purchased the net assets of Easy Company for $1,300,000, comprised of $1,200,000 of cash and a contingent performance condition of $100,000. A schedule of the net assets of Easy Company, as recorded on Easy Company's books at the time of the acquisition, is as follows: Assets Cash Receivables Inventory Land, buildings, and equipment (net) Total assets S 31,000 250,000 302,000 350.000 Liabilities Current liabilities Long-term debt Total liabilities Net assets (book value) S 90,000 185,000 S 658,000 The...
23. On January 1, 2016, Milwaukee Company purchased Mi $1,200,000 cash. The fair value of Minneapolis's assets was $1,080,000, and it had liabilities of $100,000. The book value of the company's assets was $980,000. Required: a) Prepare Milwaukee's journal entry to record the acquisition of Minneapolis Company b) At the end of 2018, Milwaukee concluded that the value of its goodwill (associated with the Minneapolis C l ompany acquisition of Minneapolis) had declined by $30,000. Prepare the journal entry to...
Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts Book Values Fair Values 50,000 53,050 41,550 35,800 Current assets Building Land Trademark Goodwil1 Liabilities Common stock Retained earnings 50,000 94,250 21,750 22,000 (53,000) (100,000) (35,000) (53,000) 1&2. Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming...
3. Acquisition Method Prance Company acquired all the assets and liabilities of Seaver Company and properly recorded the transaction under the acquisition method. Seaver's balance sheet prior to the transaction was as follows: Book Value Fair Value A/R $ 175,000 $175,000 Inventory 465,000 500,000 20,000 20,000 Equipment Building 90,000 85,000 Land 30,000 60,000 Total Assets $ 780,000 $840.000 Accounts Payable $ 120,000 $130,000 Common Stock ($5 par) 100,000 100,000 Pald in Capital 320,000 310,000 Retained Earnings 240,000 300,000 Total Liab...
Most questions answered within 3 hours.
-
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 3 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 7 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 28 minutes ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 10 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 23 minutes ago -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 24 minutes ago -
Sapphire Aerospace operates 52 weeks per year, and its cost of
goods sold last year was...
asked 27 minutes ago -
Create ER Model
Assets are resources that are used in CMS to display content.
Each asset...
asked 22 minutes ago -
For each the following molecules draw the best possible
structure based on formal charges for each...
asked 28 minutes ago -
A proton moves in the plane of this paper toward the top of the
page. A...
asked 38 minutes ago -
different divisions differing lines of business use
different costs of capital because their cost of equity...
asked 34 minutes ago -
Give an algorithm to determine whether or not the elements
of
an array of integers are...
asked 41 minutes ago