Preparation of the Allerton’s entries to record its acquisition of Deluxe in its accounting records assuming cash exchange amount $162000 and $115000 :
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 Current assets $ 24,500 $ 24,500 Building 109,500 68,000 Land 11,000 25,300 Trademark 0 31,800 Goodwill 38,000 ? Liabilities (48,000 ) (48,000 ) Common stock (100,000 ) Retained earnings (35,000 ) 1&2. Prepare Allerton’s entry to record its...
Allerton Company acquires all of Deluxe Company’s assets and liabilities for cash on January 1, 2015, 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 Current assets $ 46,750 $ 46,750 Building 100,750 57,850 Land 15,750 35,350 Trademark 0 38,000 Goodwill 23,000 ? Liabilities (51,250) (51,250) Common stock (100,000) Retained earnings (35,000) Prepare Allerton’s entry to record its acquisition of Deluxe...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were: Accounts receivable Inventory Property, plant, and equipment Land Book Value $ 245 000 320,000 490,000 295.000 Fair Value $ 245,000 540.000 740,000 590.000 In addition, Smith Corp. had liabilities totalling $510,000 at the date of acquisition and a customer list estimated to have a fair...
Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018. 30. 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: Fair Values Book Values $ 60,000 90.000 10,000 -0- 15,000 (40,000) (100,000) (35,000) Current assets.... Building.............. Land............... Trademark ..... . Goodwill ........... Liabilities.......... Common stock ....... Retained...
Problem 2-35 (LO 2-9) In a pre-2009 business combination, Acme Company acquired all of Brem Company's assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisition date, the following book and fair values were available for the Brem Company accounts: Book Values $ 68,400 148,000 Current assets Equipment Trademark Liabilities Common stock Retained earnings Fair Values $ 68,400 226,000 339,000 (71,400) (71,400) (100,000) (45,000) In addition, Acme paid an investment bank $28,700 cash for assistance...
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,100,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 15 Book Value Fair Value Accounts receivable 1,350,000 $ 1,175,000 1,800,000 3100,000 8,100,000 10,725,000 2,100,000 2,100,000 3,600,000 3,225,000 Inventories Property, plant, and points equipment Accounts payable Bonds payable Print Required: Prepare the journal entry to record the acquisition by Brewer Company. (If no entry is required...
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...
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer’s assets and liabilities were: Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
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...
On January 2, 2020. Direct Shoes Inc. disposed of a machine that cost $94,000 and had been depreciated $50,250. Present the journal entries to record the disposal under each of the following unrelated assumptions: a. The machine was sold for $42,500 cash. View transaction list Journal entry worksheet Record the sale of machine. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2020 Record entry Clear entry View general journal b. The machine was traded in on...