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Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common...
Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common shares with a fair value of $58 per share in exchange for the 1,870 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,867, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Peach Company Swartz Company Cash $70,580 $13,760 Accounts receivable (net) 95,150 20,050 Inventory 58,210 22,920 Plant and...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% Interest In Shaw Company for $542,200. On this date, Shaw Company had common stock of $403,400 and retalned earnings of $138,800. An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment: Book Value Falr Value Marketable securities $20,200 $45,100 Equipment (net) 119,900 140,000 v (a) 2 Your answer is partially correct. Try again. Prepare...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for $541,800. On this date, Shaw Company had common stock of $398,100 and retained earnings of $143,700. An examination of Shaw Company’s assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment: Book Value Fair Value Marketable securities $19,800 $44,600 Equipment (net) 120,200 140,000 (a) Prepare a Computation and Allocation Schedule for the difference between...
Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $23,140 $40,992 Accounts receivable 36,350 52,500 Inventory 123,490 151,399 Investment in Shipley Company 216,430 —0— Plant and equipment (net) 174,540 331,390 Land 110,290 223,723 Total $684,240 $800,004 Accounts payable $42,480 $120,050 Note payable 99,100 99,100 Noncontrolling interest in Shipley Company —0— 38,194 Common...
Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $23,140 $40,992 Accounts receivable 36,350 52,500 Inventory 123,490 151,399 Investment in Shipley Company 216,430 —0— Plant and equipment (net) 174,540 331,390 Land 110,290 223,723 Total $684,240 $800,004 Accounts payable $42,480 $120,050 Note payable 99,100 99,100 Noncontrolling interest in Shipley Company —0— 38,194 Common...
On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,997,000. At that time Sharp Company had common stock of $1,516,000 and retained earnings of $702,000. The book values of Sharp Company’s assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $99,000 and a book value of $81,000. The outstanding bonds were issued at par value on January 1, 2008, pay 9% annually,...
Exercise 3-6 On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows: Price Company Consolidated Cash $22,960 $40,015 Accounts receivable 31,920 59,330 Inventory 121,760 175,450 Investment in Shipley Company 193,560 —0— Plant and equipment (net) 199,520 320,530 Land 123,190 205,993 Total $692,910 $801,318 Accounts payable $41,610 $115,860 Note payable 97,900 97,900 Noncontrolling interest in Shipley Company —0— 34,158 Common...
Price Company issued 8,220 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into Price Company. Although the questions are correct, my question is how do I solve part "B"? Exercise 2-7 Price Company issued 8,220 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into...
Exercise 5-9 On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,986,000. At that time Sharp Company had common stock of $1,511,000 and retained earnings of $709,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $98,000 and a book value of $79,000. The outstanding bonds were issued at par value on January 1, 2008, pay...
Problem 4-7 Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2011, for $445,950. At that time, Score Company had stockholders' equity consisting of common stock, $201,100; other contributed capital, $158,500; and retained earnings, $89,500. On December 31, 2015, trial balances for Price Company and Score Company were as follows: Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Dividends Declared Cost of Goods Sold Other Expenses Total Debits...