Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on...
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Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on January 1, 2014, paying $690,800 cash. Senn Company's December 31, 2013, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value $67,000 Accounts receivable (net) $74,400 Inventory 91,600 104,200 Land 109,600 162,900 Buildings (net) 338,600 421,300 Equipment (net) 260,600 308,200 Total $874,800 $1,063,600 Accounts payable $78,200 $78,200 Note payable Common stock, $2 par value Other contributed capital Retained earnings 172,400 172,400 149,500 210,500 264,200 Total $874,800 As part of the negotiations, Pham Company agreed to pay the former stockholders of Senn Company $198,600 cash fair value of contingent consideration was estimated to be $130,700 on the date of acquisition. the postcombination earnings of the combined company (Pham) reached certain levels during 2014 and 2015. The Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on January 1, 2014, paying $690,800 cash. Senn Company's December 31, 2013, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value $67,000 Accounts receivable (net) $74,400 Inventory 91,600 104,200 Land 109,600 162,900 Buildings (net) 338,600 421,300 Equipment (net) 260,600 308,200 Total $874,800 $1,063,600 Accounts payable $78,200 $78,200 Note payable Common stock, $2 par value Other contributed capital Retained earnings 172,400 172,400 149,500 210,500 264,200 Total $874,800 As part of the negotiations, Pham Company agreed to pay the former stockholders of Senn Company $198,600 cash fair value of contingent consideration was estimated to be $130,700 on the date of acquisition. the postcombination earnings of the combined company (Pham) reached certain levels during 2014 and 2015. The Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014
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Related Book For
Statistics for the Life Sciences
ISBN: 978-0321989581
5th edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
Posted Date:
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