Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on January 1, 2014, paying $690,800 cash. Senn Company's December 31, 2013, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value $67,000 Accounts receivable (net) $74,400 Inventory 91,600 104,200 Land 109,600 162,900 Buildings (net) 338,600 421,300 Equipment (net) 260,600 308,200 Total $874,800 $1,063,600 Accounts payable $78,200 $78,200 Note payable Common stock, $2 par value Other contributed capital Retained earnings 172,400 172,400 149,500 210,500 264,200 Total $874,800 As part of the negotiations, Pham Company agreed to pay the former stockholders of Senn Company $198,600 cash fair value of contingent consideration was estimated to be $130,700 on the date of acquisition. the postcombination earnings of the combined company (Pham) reached certain levels during 2014 and 2015. The Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 Pham Company acquired the assets (except for cash) and assumed the liabilities of Senn Company on January 1, 2014, paying $690,800 cash. Senn Company's December 31, 2013, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value $67,000 Accounts receivable (net) $74,400 Inventory 91,600 104,200 Land 109,600 162,900 Buildings (net) 338,600 421,300 Equipment (net) 260,600 308,200 Total $874,800 $1,063,600 Accounts payable $78,200 $78,200 Note payable Common stock, $2 par value Other contributed capital Retained earnings 172,400 172,400 149,500 210,500 264,200 Total $874,800 As part of the negotiations, Pham Company agreed to pay the former stockholders of Senn Company $198,600 cash fair value of contingent consideration was estimated to be $130,700 on the date of acquisition. the postcombination earnings of the combined company (Pham) reached certain levels during 2014 and 2015. The Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014
Expert Answer:
Answer rating: 100% (QA)
Answer Journal Entry Date Account Title and Explanation Debit Cred... View the full answer
Related Book For
Statistics for the Life Sciences
ISBN: 978-0321989581
5th edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner
Posted Date:
Students also viewed these accounting questions
-
As part of the year-end accounting process for your company, you are preparing the statement of cash flows according to GAAP. One of your team, a finance major, believes the statement should be...
-
As part of the year-end audit, you are discussing the disclosure checklist with your client. The checklist identifies the items that must be disclosed in a set of IFRS financial statements. The...
-
As part of the evaluation process for functional employees, each project manager submits a written, confidential evaluation report to the employees department manager who, in turn, makes the final...
-
Among the 3 dimensioning techniques A, B and C, which one is correct. 50 50 A B 50 C
-
Is there a number that is exactly 1 more than its cube?
-
Discuss the concepts of verification and validation in simulation.
-
Many single women and married couples use donated sperm to conceive children each year. Pennsylvania resident Donna Donovan decided to use donated sperm from Idant Laboratories, a New York sperm bank...
-
Sanchez Trucking has been experiencing delays at its warehouse operations. Management hired a consultant to find out why service deliveries to local businesses have taken longer than they should. The...
-
1. Brody knows that he can afford a monthly mortgage payment of $1500. The bank will offer him a mortgage rate of 2.14% compounded monthly over a 25 years period. Calculate the most expensive home...
-
Prepare three contribution-format income statements for the Bullarama event based on: 5a) an optimistic projection (no onsite competitors), 5b) a conservative projection (one onsite competitor), and...
-
The MacLellans originally chose to make payments of $1,600 per month on a $138,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised their...
-
Discuss the players in the micro-environment and suggest how their roles are changing.
-
You recently started a job as digital marketing manager for a major retailer. Produce a checklist of all the different legal issues that you need to check for compliance on the retailers digital...
-
Discuss the extent to which the eight key strategy decisions are important to a new online retail business.
-
Social media can be a powerful communication channel. Discuss the opportunities and pitfalls of these platforms with reference to the main social networks and examples of how brands have used them...
-
Why is due diligence analysis so important to the merger process?
-
Given the following profit payoff table, which decision would you choose based on a cautious decision approach? d d d3 d4 d d4 d2 O d and d3 d3 $1 50 80 100 300 $2 20 30 30 S3 -10 -20 -40 25 -160 Ac...
-
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
-
As part of a study to determine the effect of flaxseed on blood thiocyanate concentration in rats, the authors reported the amount of hydrogen cyanide (HCN) in the flaxseed fed to the rats. This...
-
An important indicator of lung function is forced expiratory volume (FEV), which is the volume of air that a person can expire in one second. Dr. Hernandez plans to measure FEV in a random sample of...
-
In a study of 1,040 subjects, researchers found that the prevalence of coronary heart disease increased as the number of cups of coffee consumed per day increased. (a) What is the explanatory...
-
Smart Manufacturing Systems Pty Ltds accountant recently prepared the following data from the companys accounting records for the year ended 30 June 2019. Factory overhead is applied at the rate of...
-
During the year ended 30 June 2019, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities. Required (a) Calculate the relationship between factory...
-
Telecommunications company Toronto Ltd signed a 15year deal to sell capacity on its cable network to a rival company for $200 million. The deal was completed on the last day of Toronto Ltds financial...
Study smarter with the SolutionInn App