Advanced accounting problem

3 Problem 4 5 Assume that Jake Corporation and Kate Corporation are merged in a business combintion accounted for as a pooling of interests and 6 that their equity accounts immediately before 7 8 Jack Corporation Kate Corporation Total 9 10 Capital stock, $10 par $ 100,000 $ 50,000 $ 150,000 11 Additional paid-in capital 10,000 20,000 30,000 12 Total paid-un capital $ 110,000 $ 70,000 $ 180,000 13 Retained earnings 50,000 30,000 80,000 14 Net assets and equity $ 160,000 $ 100,000 $ 260,000 15 16 Case 1 17 Jake, the surviving corporation, issues 5,000 shares of its stock for the net assets of Kate. In this case, the $180,000 18 total paid-in-capital of the combining companies exceeds the $150,000 capital stock of Jack, the surviving entity, by 19 $30,000. As a result of the merger, Jake has capital stock of $150,000, additional paid-in-capital of $30,000, and 20 retained earnings of $80,000 for a total equity of $260,000. The entry on Jake's books to record the pooling is: 21 22 23