The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):

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The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):
Pal Sip
Capital stock, $10 par .................. $6,000 ................. $3,200
Other paid-in capital ........................ 800 ................... 1,600
Retained earnings ........................ 2,400 .................. 1,200
Stockholders' equity ................... $9,200 ................. $6,000
On January 2, Pal issued 600,000 of its shares with a market value of $20 per share for all of Sip's shares, and Sip was dissolved. On the same day, Pal paid $20,000 to register and issue the shares and $40,000 for other direct costs of combination.
Required
Prepare the stockholders' equity section of Pal Corporation's balance sheet immediately after the acquisition on January 2.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0133451863

12th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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