X Inc. acquired 100% of the outstanding common stock of Y Inc. for $250,000 cash and...
X Inc. acquired 100% of the outstanding common stock of Y Inc. for $250,000 cash and 20,000 shares of its own common stock ($5 par value), which was trading at $10 per share at the acquisition date. The estimated fair market values of assets, liabilities, and equity accounts of Y. Inc are as follows:
|
Accounts Receivable $100,000 Inventory 50,000 LT Marketable sec. 60,000 PP&E 140,000 Total Assets $350,000 |
Liabilities $200,000 Retained Earnings 50,000 Common Stock 100,000 Total Liab/Equity $ 350,000 |
Require:
- Calculate Acquisition cost of X.Inc
- Calculate Good will of X.Inc
- Pass journal entry in books of X. Inc
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X Inc. acquired 100% of the outstanding common stock of Y Inc.
for $250,000 cash and...
Please, i need Unique answer, Use your own words (don't copy and paste). *Please, don't use...
Please, i need Unique answer, Use your own
words (don't copy and paste).
*Please, don't use handwriting.
Course: Advanced
Financial Accounting
Q1. Explain the term Acquisition and investments in
intercorporate Entities.
Q2. X Inc. acquired 100% of the outstanding common stock of Y
Inc. for $250,000 cash and 20,000 shares of its own common stock
($5 par value), which was trading at $10 per share at the
acquisition date. The estimated fair market values of assets,
liabilities, and equity accounts of...
Please, i need Unique answer, Use your own words (don't copy and paste). *Please, don't use...
Please, i need Unique answer, Use your own
words (don't copy and paste).
*Please, don't use handwriting.
Course: Advanced
Financial Accounting
Q2. X Inc. acquired 100% of the outstanding common stock of Y
Inc. for $250,000 cash and 20,000 shares of its own common stock
($5 par value), which was trading at $10 per share at the
acquisition date. The estimated fair market values of assets,
liabilities, and equity accounts of Y. Inc are as follows:
Require:
Calculate Acquisition cost of...
P Inc. acquired 100% of S Inc.’s outstanding common stock for $ 1,500,000 cash. Divide the...
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7. Rangers, Inc. acquires all of the outstanding common stock of Slowly Industries for $450,000 cash....
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Barton Corp acquired 100% of Google Inc. on January 1, 2020, in exchange for cash. The...
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Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $495,000 cash....
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Liberty Inc. acquired 100% of the voting common stock of Valance Inc. on January 1, 2018...
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2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc....
2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc. on January 2, 2021. Johns’ balance sheet on January 2, 2021 was as follows: Accounts receivable-net $350,000 Inventory Current liabilities $250,000 300,000 250,000 Long term debt Common stock ($1 par) Paid-in capital Retained carnings Total Liabilities & Equity $1,370,000 Land 200,000 45,000 Building-net Equipment-net 450,000 300,000 120,000 475,000 Total Assets $1,370,000 Fair values agree with book values except for inventory, land, and equipment that...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventories $100,000 $50,000 Land 200,000 100.000 Property & equipment 225.000 100.000 Total assets $525,000 $250,000 Liabilities $150,000 $80,000 Common stock ($2 par) 20,000 10,000 Additional paid-in capital 280.000 150.000 Retained...
Please, i need Unique answer, Use your own
words (don't copy and paste).
*Please, don't use handwriting.
Course: Advanced
Financial Accounting
Q1. Explain the term Acquisition and investments in
intercorporate Entities.
Q2. X Inc. acquired 100% of the outstanding common stock of Y
Inc. for $250,000 cash and 20,000 shares of its own common stock
($5 par value), which was trading at $10 per share at the
acquisition date. The estimated fair market values of assets,
liabilities, and equity accounts of...
Please, i need Unique answer, Use your own
words (don't copy and paste).
*Please, don't use handwriting.
Course: Advanced
Financial Accounting
Q2. X Inc. acquired 100% of the outstanding common stock of Y
Inc. for $250,000 cash and 20,000 shares of its own common stock
($5 par value), which was trading at $10 per share at the
acquisition date. The estimated fair market values of assets,
liabilities, and equity accounts of Y. Inc are as follows:
Require:
Calculate Acquisition cost of...
7. Rangers, Inc. acquires all of the outstanding common stock of Slowly Industries for $450,000 cash. On the acquisition date, the subsidiary had Common Stock of $40,000 and Retained Earnings of $160,000. A patent unrecorded by Slowly was valued at $158,000. Required: a. Prepare the entry on Ranger's books to record the purchase. b. Prepare all necessary consolidation entries. 8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000...
Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/15. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2015. Each company's financial statements for the year ended 12/31/15 immediately after the acquisition are as follows: Income Statement (2015) Sales Cost of sales Expenses Net Income Pepper Co. (900,000) 500,000 260,000 (140,000) Salt Co. (500,000) 250,000 202,000 (48,000) 20,000 70,000 80,000 Balance Sheet (as of 12/31/15) Cash...
2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc. on January 2, 2021. Johns’ balance sheet on January 2, 2021 was as follows: Accounts receivable-net $350,000 Inventory Current liabilities $250,000 300,000 250,000 Long term debt Common stock ($1 par) Paid-in capital Retained carnings Total Liabilities & Equity $1,370,000 Land 200,000 45,000 Building-net Equipment-net 450,000 300,000 120,000 475,000 Total Assets $1,370,000 Fair values agree with book values except for inventory, land, and equipment that...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventories $100,000 $50,000 Land 200,000 100.000 Property & equipment 225.000 100.000 Total assets $525,000 $250,000 Liabilities $150,000 $80,000 Common stock ($2 par) 20,000 10,000 Additional paid-in capital 280.000 150.000 Retained...
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