On May 1, Soriano Co. reported the following account balances along with their estimated fair values...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On May 1, Soriano Co. reported the following account balances along with their estimated fair values Carrying Amount Receivables Inventory Copyrights Patented technology: Total assets Current liabilities: Long-term liabilities Common stock Retained earnings Total liabilities and equities: Fair Value 284,400 $ 284,400 75,600 78,600 145,000 528,000 873,000 731,000 $1,381,000 $1,622,000 . $ $ 257,000 $ 742,000 100,000 282,000 $ 1,381,000 257,000 722,500 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $145,500 to an investment banking firm, The following information was also available: • Zambrano further agreed to pay an extra $84,800 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $42,400. Soriano has a research and development project in process with an appraised value of $237.500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use • Soriano has a research and development project in process with an appraised value of $237,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $813,800 & (b) $923,600. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) On May 1, Soriano Co. reported the following account balances along with their estimated fair values Carrying Amount Receivables Inventory Copyrights Patented technology: Total assets Current liabilities: Long-term liabilities Common stock Retained earnings Total liabilities and equities: Fair Value 284,400 $ 284,400 75,600 78,600 145,000 528,000 873,000 731,000 $1,381,000 $1,622,000 . $ $ 257,000 $ 742,000 100,000 282,000 $ 1,381,000 257,000 722,500 On that day, Zambrano paid cash to acquire all of the assets and liabilities of Soriano, which will cease to exist as a separate entity. To facilitate the merger, Zambrano also paid $145,500 to an investment banking firm, The following information was also available: • Zambrano further agreed to pay an extra $84,800 to the former owners of Soriano only if they meet certain revenue goals during the next two years. Zambrano estimated the present value of its probability adjusted expected payment for this contingency at $42,400. Soriano has a research and development project in process with an appraised value of $237.500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use • Soriano has a research and development project in process with an appraised value of $237,500. However, the project has not yet reached technological feasibility and the project's assets have no alternative future use. a&b. Prepare Zambrano's journal entries to record the Soriano acquisition assuming its initial cash payment to the former owners was (a) $813,800 & (b) $923,600. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Expert Answer:
Answer rating: 100% (QA)
a Cash payment to the former owners was 813800 1 Receivables Dr 284400 Inventory Dr 78600 co... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
. A, B, and C are new Lawyers and are decided to form a partnership. A is to contribute cash of P50,000 and his computer originally cost P60,000 but has a fair value of P45,000. . B is to contribute...
-
Michelle, Inc. produces wine bottles for vitners in a process that starts in the Melt and Mold Department. Data concerning that department's operations in the most recent period appear below:...
-
The Space Cube is supposed to be the world's smallest computer, with dimensions of 2 inches by 2 inches by 2.2 inches. Find the surface area of the Space Cube.
-
The indicating instruments with linear scale is Electrostatic instrument a O Thermocouple instrument.bo Dynamometer instrument C PMMC.d O
-
Are virtual currencies "money," and, if they are, should they be included in nations' money supplies? Should "trust" be one of the functions of money?
-
Evaluate the integrals in Problem (2x 1) dx J5
-
Use the September transaction data for Otis Carpenter, M.D., P.C. Requirements 1. Open the following T-accounts: Cash, Accounts receivable, Medical supplies, Accounts payable, Common stock, Service...
-
During the school year, the Homebush School band arranges concert dates in many communities. Because only part of the school??s travel expenses are covered by the concert admission fees, the band...
-
How are we prepared if we don't receive the right offer? Or our job has been eliminated due to organization downsizing? How prepared are you and what steps are you taking?
-
1. Prepare manual entries and complete the general and subsidiary ledgers. 2. Prepare an account receivable and account payable reconciliation of the subsidiary ledger accounts to the control...
-
If the Fed lowers the federal funds rate, then a. investment and consumption expenditures decrease. b. the price of the dollar rises on the foreign exchange market and so net exports decrease. c. a...
-
Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Starbucks: Staying Local While Going Global Through Marketing Research describes how Starbucks has...
-
The area under the standard normal curve to the right of z = 0.51 is 0.6950. What is the area to the left of z = 0.51?
-
The area under the standard normal curve between z = 1.32 and z = 1.82 is 0.0590. What is the area between z = 1.82 and z = 1.32?
-
When a distribution is skewed to the right, this means it has (a) __ . a. Positive skew b. Negative skew c. No skew d. Multiskewed
-
If you were a volunteer coordinator, consider some of the advantages and disadvantages of micro volunteering to individuals and organizations. Please explain your response.
-
Assume a bond has a 25-year maturity, an 8% annual coupon paid semiannually, and a face value of $1,000. The going nominal annual interest rate is 6%. What is the bond's price?
-
Which one of the following anhydrous chloride is not obtained on direct heating of its hydrated chloride? (A) BaCl2 (B) CaClz (C) MgCl2 (D) SrCl2
-
Jones Company obtains all of the common stock of Hudson, Inc., by issuing 50,000 shares of its own stock. Under these circumstances, why might the determination of a fair value for the consideration...
-
The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that has been determined as having the Israeli shekel (ILS) as its functional currency. On October 1,...
-
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: For how much money must the other assets...
-
Show that \(\left(\frac{\partial C_{P}}{\partial P} ight)_{T}=\frac{6 B}{T^{3}}\) for a gas obeying the equation of state \(V=\frac{R T}{P}+A-\frac{B}{T^{2}}\). [Hint: We know that...
-
What are principal coordinates? What is their use?
-
Define these terms: mass coupling, velocity coupling, elastic coupling.
Study smarter with the SolutionInn App