Account Titles & Explanations | Debit | Credit |
Investment in Shy Inc. ($2433400 + [15040 * $39]) | $3019960 | |
Cash | $2433400 | |
Common Stock ($15040 * $2) | $30080 | |
Other Contributed Capital | $556480 | |
(To record the acquisition) | ||
Acquisition Expense | $99060 | |
Deferred Acquisition Charges | $91980 | |
Acquisition Costs Payable | $7080 | |
(To record the direct costs) |
Exercise 3-9 Peep Inc. acquired 100% of the outstanding common stock of Shy Inc. for $2,433,400...
Exercise 3-8 Peep Inc. acquired 100% of the outstanding common stock of Shy Inc. for $2,262,400 cash and 14,060 shares of its common stock ($2 par value). The stock’s market value was $39 on the acquisition date. Prepare the journal entry to record the acquisition. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles...
Exercise 3-2 On January 1, 2014, Polo Company purchased 100% of the common stock of Save Company by issuing 42,060 shares of its (Polo’s) $10 par value common stock with a market price of $18.10 per share. Polo incurred cash expenses of $18,210 for registering and issuing the common stock. The stockholders’ equity section of the two companies’ balance sheets on December 31, 2013, were: Polo Save Common stock, $10 par value $325,900 $291,030 Other contributed capital 630,640 173,360 Retained...
Exercise 17-16 Blue Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries...
Oriole Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,031,800 for 46,900 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $714,000 for 2021. The fair value of Kulikowski's stock was $25 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Oriole...
Teal Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $998,800 for 45,400 shares. Kulikowski Inc, declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $708,000 for 2021. The fair value of Kulikowski's stock was $25 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Teal...
Grouper Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Grouper...
Marin Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,053,400 for 45,800 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $742,000 for 2021. The fair value of Kulikowski's stock was $26 per share at December 31, 2021. Assume that the security is a trading security Prepare the journal entries for Marin...
Blue Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,111,200 for 46,300 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $788,000 for 2021. The fair value of Kulikowski’s stock was $27 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Blue...
Exercise 3-3 On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $178,050 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Prunce Sun Cash $263,470 $ 60,730 Accounts receivable (net) 143,210 22,500 Inventory 110,480 56,650 Plant and equipment (net) 414,170 101,680 Land 59,220 29,600 Total asset $990,550 $271,160 Accounts payable $111,630 $ 50,670 Mortgage payable 67,840 40,000 Common stock, $2 par value 416,700 69,670 Other contributed...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Monty...