On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at $15 per share several years earlier. On this date, Pam issued 1.5 of its $10 par value shares for each of the other 98,000 outstanding shares of Sun in a pooling of interests in which Sun Corporation was dissolved. Sun Corporation's after-closing trial balance

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On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at $15 per share several years earlier. On this date, Pam issued 1.5 of its $10 par value shares for each of the other 98,000 outstanding shares of Sun in a pooling of interests in which Sun Corporation was dissolved. Sun Corporation's after-closing trial balance on December 31, 1999, consisted of the following (in thousands):
Current assets ..................... $ 800
Plant and equipment-net .......1,500
Liabilities ............................................. $ 200
Capital stock, $5 par ...................................500
Additional paid-in capital ..........................1,000
Retained earnings .....................................600
.......................................$2,300 ........$2,300
Required:
Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Related Book For answer-question

Advanced Accounting

13th edition

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

ISBN: 978-0134472140