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Exercise 3-3 On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of...
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...
Prepare a consolidated balance sheet at the date of acquisition. Exercise 3-3 On January 2, 2014, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $195,030 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Cash Accounts receivable (net) Inventory Plant and equipment (net) Land Prunce $274,030 156,030 106,590 373,640 59,480 $969,770 Sun $ 69,110 22,840 57,530 92,380 32,530 $274,390 Total asset Accounts payable Mortgage payable Common stock, $2 par...
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...
EXERCISE 3‐3 Consolidated Balance Sheet, Stock Purchase LO 7LO 8 On January 2, 2019, Prunce Company acquired 90% of the outstanding common stock of Sun Company for $192,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Prunce Sun Cash $260,000 $ 64,000 Accounts receivable (net) 142,000 23,000 Inventory 117,000 54,000 Plant and equipment (net) 386,000 98,000 Land 63,000 32,000 Total asset $968,000 $271,000 Accounts payable $104,000 $ 47,000 Mortgage payable 72,000 39,000 Common...
Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2014, for cash. At that time the balance sheet of Spruce Company was as follows: Current assets $1,135,400 Plant and equipment 1,069,190 Land 175,250 Total assets $2,379,840 Liabilities $830,150 Common stock, $20 par value 825,300 Other contributed capital 441,330 Retained earnings 377,560 Total 2,474,340 Less treasury stock at cost, 4,725 shares 94,500 Total equities $2,379,840 Prepare the elimination entry required for the preparation of a...
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 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
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 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...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $318,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...