Question

Following are the balance sheets of Power Boogie Musical Corporation and Shoot-Toot Tuba Company as of December 31, 20X5. Assets Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Plant & Equipment Accumulated Depreciation Other Assets POWER BOOGIE MUSICAL CORPORATION Balance Sheet December 31, 2exs Liabilities & Equities $ 28,000 Accounts Payable 86,000 Notes Payable (1,200) Mortgage Payable 194,000 Bonds Payable 982,099 Capital Stock ($10 par) (169,000) Additional paid in capital 22,000 Retained Earnings $1,141,800 Total Liabilities & Equities $ 35,000 55,000 195,000 195,000 490,000 900 179,900 $1,141,800 Total Assets Assets Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Plant & Equipment Accumulated Depreciation SHOOT-TOOT TUBA COMPANY Balance Sheet December 31, 20x5 Liabilities & Equities $ 400 Accounts Payable 18,000 Notes Payable (1,000) Mortgage Payable 80,200 Bonds Payable 462,000 Capital Stock (550 par) (228,000) Additional paid in capital $ 10,200 15,000 62,000 101,080 83,000 141,000

Answer 1

Date	Account Titles	Debit $	Credit $
January 1,20X6	Cash	400
	Accounts Receivable	18,000
	Allowance for uncollectible accounts		2,800
	Inventory	43,000
	Plant & Equipment	509,000
	Other assets	26,400
	Accounts Payable		10,200
	Notes Payable		15,000
	Mortgage Payable		62,000
	Bonds Payable		101,000
	Common Stock (9,000 x 10 )		90,000
	Additional paid in capital (9,000 x (55-10) )		405,000
	Goodwill ( Balancing figure )	89,200