The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1.
| Book Value | Fair Value | ||||||
| Inventory | $ | 296,000 | $ | 242,750 | |||
| Land | 766,500 | 1,034,250 | |||||
| Buildings | 2,150,000 | 2,453,000 | |||||
| Customer relationships | 0 | 846,750 | |||||
| Accounts payable | (106,500 | ) | (106,500 | ) | |||
| Common stock | (2,000,000 | ) | |||||
| Additional paid-in capital | (500,000 | ) | |||||
| Retained earnings 1/1 | (428,000 | ) | |||||
| Revenues | (467,000 | ) | |||||
| Expenses | 289,000 | ||||||
Arturo pays cash of $4,271,250 to acquire Westmont. No stock is issued and Arturo pays $51,100 for legal fees to complete the transaction.
Prepare Arturo’s journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
- Record the acquisition of Westmont Company.
Note: Enter debits before credits.
|
- Record the legal fees related to the combination.
Note: Enter debits before credits.
|
Homework Answers
| General Journal | Debit | Credit |
| Inventory | 242750 | |
| Land | 1034250 | |
| Buildings | 2453000 | |
| Customer Relationships | 846750 | |
| Accounts payable | 106500 | |
| Cash | 4271250 | |
| Gain on bargain purchase | 199000 | |
| General Journal | Debit | Credit |
| Professional Services Expense | 51100 | |
| Cash | 51100 | |
| To record legal fees related to the combination. | ||
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The following book and fair values were available for Westmont
Company as of March 1.
Book...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 406,000 $ 363,500 817,500 1,087,500 2,005,000 2,314,750 0 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 Arturo pays cash of $4,389,750 to acquire Westmont. No stock is issued and Arturo pays $44,000 for legal fees to complete the transaction. Prepare Arturo's journal entry...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 375,750$ 341,250 797,250 1,082,250 2,040,000 2,340,000 861,000 (93,500) (93,500) (2,000,000) (500,000) (437,500) (495,000) 313.000 Arturo pays cash of $4,338,000 to acquire Westmont. No stock is issued and Arturo pays $45,800 for legal fees to complete the transaction Prepare Arturo's journal entry to...
The following book and fair values were available for Westmont Company as of March 1. $...
The following book and fair values were available for Westmont Company as of March 1. $ Book Value 245,500 820,500 2,115,000 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Fair Value $ 203,750 1,072,500 2,457,750 833,250 (96,000) (96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo Company pays $4,160,000 cash and issues 22,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 398,500 $ 359,500 823,500 1,137,750 1,965,000 2,330,250 0 842,250 (113,500) (113,500) (2,000,000) (500,000) (399,500) (486,000) 312,000 Arturo Company pays $3,530,000 cash and issues 24,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 398,500 $ 359,500 Land 823,500 1,137,750 Buildings 1,965,000 2,330,250 Customer relationships 0 842,250 Accounts payable (113,500 ) (113,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (399,500 ) Revenues (486,000 ) Expenses 312,000 Arturo pays cash of $4,422,250 to acquire Westmont. No stock is issued and Arturo pays $51,400 for legal fees to complete...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 587,750 $ 555,250 Land 794,250 1,082,250 Buildings 1,805,000 2,157,500 Customer relationships 0 838,500 Accounts payable (102,000 ) (102,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (412,500 ) Revenues (486,500 ) Expenses 314,000 Arturo Company pays $4,010,000 cash and issues 26,300 shares of its $2 par value common stock (fair value of $50 per...
The following book and fair values were available for Westmont Company as of March 1 Book...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value $ 245,500 $ 203,750 820,500 1,072,500 2,115,000 2,457,750 833,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses (96,0)96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo pays cash of $4,275,250 to acquire Westmont. No stock is issued and Arturo pays $51,200 for legal fees to complete the transaction Prepare Arturo's journal entry to record...
The following book and fair values were avallable for Westmont Company as of March 1 Book...
The following book and fair values were avallable for Westmont Company as of March 1 Book Value Fair Value $ 231,888 191,758 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 822,8 1,119,758 2,13e,9e8 2,447,258 867,758 (184, 1,8) (2,866,888) (58e,eee) (417,508) (464, 588) 303,8e8 Arturo Company pays $3,780,000 cash and Issues 28,700 shares of its $2 par value common stock (falr value of $50 per share) for all of Westmont's common stock...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 588,500 $ 549,000 Land 780,000 1,045,500 Buildings 1,755,000 2,056,500 Customer relationships 0 840,000 Accounts payable (101,500 ) (101,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (378,000 ) Revenues (448,000 ) Expenses 304,000 Arturo Company pays $4,180,000 cash and issues 22,700 shares of its $2 par value common stock (fair value of $50 per...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 200,500 $ 167,000 Land 817,500 1,097,250 Buildings 2,175,000 2,506,500 Customer relationships 0 860,250 Accounts payable (87,000 ) (87,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (431,500 ) Revenues (478,500 ) Expenses 304,000 Arturo Company pays $3,650,000 cash and issues 22,500 shares of its $2 par value common stock (fair value of $50 per...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 406,000 $ 363,500 817,500 1,087,500 2,005,000 2,314,750 0 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 Arturo pays cash of $4,389,750 to acquire Westmont. No stock is issued and Arturo pays $44,000 for legal fees to complete the transaction. Prepare Arturo's journal entry...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 375,750$ 341,250 797,250 1,082,250 2,040,000 2,340,000 861,000 (93,500) (93,500) (2,000,000) (500,000) (437,500) (495,000) 313.000 Arturo pays cash of $4,338,000 to acquire Westmont. No stock is issued and Arturo pays $45,800 for legal fees to complete the transaction Prepare Arturo's journal entry to...
The following book and fair values were available for Westmont Company as of March 1. $ Book Value 245,500 820,500 2,115,000 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Fair Value $ 203,750 1,072,500 2,457,750 833,250 (96,000) (96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo Company pays $4,160,000 cash and issues 22,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 398,500 $ 359,500 823,500 1,137,750 1,965,000 2,330,250 0 842,250 (113,500) (113,500) (2,000,000) (500,000) (399,500) (486,000) 312,000 Arturo Company pays $3,530,000 cash and issues 24,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value $ 245,500 $ 203,750 820,500 1,072,500 2,115,000 2,457,750 833,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses (96,0)96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo pays cash of $4,275,250 to acquire Westmont. No stock is issued and Arturo pays $51,200 for legal fees to complete the transaction Prepare Arturo's journal entry to record...
The following book and fair values were avallable for Westmont Company as of March 1 Book Value Fair Value $ 231,888 191,758 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 822,8 1,119,758 2,13e,9e8 2,447,258 867,758 (184, 1,8) (2,866,888) (58e,eee) (417,508) (464, 588) 303,8e8 Arturo Company pays $3,780,000 cash and Issues 28,700 shares of its $2 par value common stock (falr value of $50 per share) for all of Westmont's common stock...
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