P issues 20,000 shares in exchange for 100% of S's Common equity. The FV of P's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
P issues 20,000 shares in exchange for 100% of S's Common equity. The FV of P's equity is $35/sh. The stock has a par value of $1/sh. The company incurs $25,000 is stock issuance and registration costs. Prior to the purchase of S's shares P and S's balance sheets are as follows: DR (CR) DR (CR) PreAcquisition Balance Sheets Cash Receivables Patented Technology Equipment (net) Goodwill Totals Accounts payable Notes payable P 60,000 150,000 400,000 840,000 50,000 1,500,000 Common stock Additional paid-in capital Retained earnings Totals S 50,000 65,000 115,000 60,000 10,000 300,000 (110,000) (370,000) (50,000) (110,000) (860,000) (1,500,000) Prepare P's journal entry(ies) to record the purchase of S's common equity. (40,000) (50,000) (50,000) (60,000) (100,000) (300,000) P issues 20,000 shares in exchange for 100% of S's Common equity. The FV of P's equity is $35/sh. The stock has a par value of $1/sh. The company incurs $25,000 is stock issuance and registration costs. Prior to the purchase of S's shares P and S's balance sheets are as follows: DR (CR) DR (CR) PreAcquisition Balance Sheets Cash Receivables Patented Technology Equipment (net) Goodwill Totals Accounts payable Notes payable P 60,000 150,000 400,000 840,000 50,000 1,500,000 Common stock Additional paid-in capital Retained earnings Totals S 50,000 65,000 115,000 60,000 10,000 300,000 (110,000) (370,000) (50,000) (110,000) (860,000) (1,500,000) Prepare P's journal entry(ies) to record the purchase of S's common equity. (40,000) (50,000) (50,000) (60,000) (100,000) (300,000)
Expert Answer:
Answer rating: 100% (QA)
Journal Entry for Purchase of Equity in S company Inve... View the full answer
Related Book For
Transportation A Global Supply Chain Perspective
ISBN: 978-1133592969
8th edition
Authors: John J. Coyle, Robert A. Novak, Brian Gibson, Edward J. Bard
Posted Date:
Students also viewed these general management questions
-
Pipelines account for more than 20 percent of the intercity ton-miles but less than 5 percent of the revenue paid by shippers to transportation companies. What factors account for this contrast? Is...
-
In January 2008, Wilkinson, Inc., acquired 20 percent of the outstanding common stock of Bremm, Inc., for $700,000. This investment gave Wilkinson the ability to exercise significant influence over...
-
In January 2010, Wilkinson, Inc., acquired 20 percent of the outstanding common stock of Bremm, Inc., for $700,000. This investment gave Wilkinson the ability to exercise significant influence over...
-
In Exercises identify the open intervals on which the function is increasing or decreasing. f(x) = sinx + sin x, 0 < x < 2
-
At the beginning of the chapter I gave three examples of different meanings for the number 18 in terms of the underlying scale of measurement. Give an example where the number 18 would be on an...
-
Which of the following would not likely motivate management to time the write off of impaired assets in the current period? a. Current unaudited net income is abnormally high in relation to prior...
-
Discuss the uses and limitations of the statement of financial position for decision-making purposes.
-
The real risk-free rate of interest is 3 percent. Inflation is expected to be 2 percent this year and 4 percent during the next 2 years. Assume that the maturity risk premium is zero. What is the...
-
Use the following scenario for Blanks #1-Blanks #6 Company YYZ is determining whether a piece of equipment is impaired. The equipment has a cost of $900,000 and depreciation that had been taken to...
-
Consider a building with 3200 ft 2 of walls. Assume the ceiling is well-insulated and compute the energy loss through the walls based on the following materials, assuming an indoor temperature of 70...
-
Austin Porter is presently in Grade 12 at his high school. He is considering which university he wants to apply to in order to gain an undergraduate degree in engineering. Austin's decision making...
-
A doctor prescribes 2.5 g of a drug, daily, for a patient. The pharmacist has only 500 mg tablets available. How many tablets will the patient take daily? number of tablets:
-
Read and respond to"Striking a 'Pose': A Brief History of Ball Culture" by Les Fabian Brathwaite & Responses: How much does ball culture rely on traditional beauty standards? How much is it...
-
Discuss whether you consider marketing an appropriate practice in health care. Identify similarities and differences between health care marketing and marketing in other industries. Review the ads...
-
Give the domain of the function below. Write your answer in interval notation. If necessary, you can use two copies of the lower case letter "o" (oo) for the symbol and an uppercase letter U for the...
-
What is the payback period for a $16,700 investment with the following cash flows? Year Cash Flow 123 $ 2,100 6,800 6,900 45 4 7,300 5,100
-
Cheyenne Harvest Company sells a product that includes a one-year warranty on parts and labor. During the year, 8,800 units are sold. Cheyenne Harvest expects that 3% of the units will be defective...
-
Use translations to graph f. f(x) = x-/2 +1
-
The railroad industrys cost structure is different than that of the motor carrier industry. What factors contribute to this difference? What impact do these differences have for the railroads in...
-
While improved transportation systems provide economic benefits, there may be some associated environmental costs. What are the major environmental costs associated with transportation and what is...
-
What is collaboration? How can supply chains use collaboration to their advantage?
-
You were engaged to audit the financial statements of Ronlyn Corporation for the year ended June 30, 1999. On May 1, 1999, the corporation borrowed $500,000 from Second National Bank to finance plant...
-
You are engaged in an audit of the financial statements of Pate Corporation for the year ended December 31, 1999. The financial statements and records of Pate Corporation have not been audited by...
-
The Eaton Company was incorporated July 10, 1999, with authorized capital as follows: a. Common stock. Class A, 20,000 shares, par value $25 per share. b. Common stock. Class B, 100,000 shares, par...
Study smarter with the SolutionInn App