Peachtree Corporation acquired 100 percent of the outstanding common stock

Peachtree Corporation acquired 100 percent of the outstanding common stock of Standard Company in a business combination. Immediately before the business combination, the two businesses had the following balance sheets:
Peachtree Corporation acquired 100 percent of the outstanding common stock

Peachtree agreed to give Standard€™s shareholders $ 1,500 cash in exchange for all their Standard common stock. Standard€™s equipment has a fair value of $ 1,100.
Required:
1. Prepare the entries for Peachtree and Standard to record the business combination.
2. Prepare the balance sheet of Peachtree immediately after the business combination.
3. Prepare the balance sheet of Standard immediately after the business combination.
4. Calculate the amount of the adjustment to the book value of Standard€™s equity and the amount of goodwill.
5. Prepare a consolidated balance sheet immediately after the combination.

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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