On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at...
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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 outstand- ing 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 Plant and equipment-net Liabilities Capital stock, $5 par Additional paid-in capital Retained earnings $ 800 1,500 $2,300 $ 200 500 1,000 600 $2,300 REQUIRED: Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests. (Hint: Do not forget to consider the 2,000 shares of Sun held by Pam on January 1, 2000.) 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 outstand- ing 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 Plant and equipment-net Liabilities Capital stock, $5 par Additional paid-in capital Retained earnings $ 800 1,500 $2,300 $ 200 500 1,000 600 $2,300 REQUIRED: Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests. (Hint: Do not forget to consider the 2,000 shares of Sun held by Pam on January 1, 2000.)
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Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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