Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also Included are fair values for Sol Company accounts. Padre Company Sol Company Book Values Book Values Fair Values Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Note: Parentheses indicate a credit balance. 12/31 12/31 12/31 $ 215,000 58,550 $ 58,550 258,750 376,000 376,000 532,500 252,000 309,400 767,500 136,000 114,700 780,000 282,000 342,900 245,000 240,000 279,400 (321,000) (173,000) (140,000) (173,000) (46,250) (1,085,000) (545,000) (46,250) (545,000) (660,000) (210,000) (70,000) (90,000) (482,500) (253,000) (996,250) (373,300) 956,000 346,000 On December 31, Padre acquires Sol's outstanding stock by paying $188,000 in cash and Issuing 15,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,800 as well as $6,100 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Answer is complete but not entirely correct. Accounts Amounts Inventory $ 841,900 Land $ 882,200 Buildings and equipment $ 1,122,900 Franchise agreements S 524,400 Goodwill S 91,300 Revenues S 996,250 Additional paid-in capital S 373,900 Expenses S 977,800 Retained earnings, 1/1 $ 482,500 Retained earnings, 12/31 S 482,500 Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also Included are fair values for Sol Company accounts. Padre Company Sol Company Book Values Book Values Fair Values Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Note: Parentheses indicate a credit balance. 12/31 12/31 12/31 $ 215,000 58,550 $ 58,550 258,750 376,000 376,000 532,500 252,000 309,400 767,500 136,000 114,700 780,000 282,000 342,900 245,000 240,000 279,400 (321,000) (173,000) (140,000) (173,000) (46,250) (1,085,000) (545,000) (46,250) (545,000) (660,000) (210,000) (70,000) (90,000) (482,500) (253,000) (996,250) (373,300) 956,000 346,000 On December 31, Padre acquires Sol's outstanding stock by paying $188,000 in cash and Issuing 15,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,800 as well as $6,100 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Answer is complete but not entirely correct. Accounts Amounts Inventory $ 841,900 Land $ 882,200 Buildings and equipment $ 1,122,900 Franchise agreements S 524,400 Goodwill S 91,300 Revenues S 996,250 Additional paid-in capital S 373,900 Expenses S 977,800 Retained earnings, 1/1 $ 482,500 Retained earnings, 12/31 S 482,500
Expert Answer:
Answer rating: 100% (QA)
To determine the values that would be shown in Padres consolidated financial statements for each of the accounts listed we need to consider the fair v... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
The funded status of Patel Paneling Inc.s defined benefit pension plan and the balances in prior service cost and the net gainpensions, are given below ($ in thousands): Retirees were paid $270,000,...
-
You are given two planes in parametric form, x1 x2 1 x3 where x1, x2, 3, , 2, 1,42 R. Let I be the line of intersection of II and II2. a. Find vectors n and no that are normals to II and II 2 must...
-
Suppose that a student's verbal score X from next year's Graduate Record Exam can be considered an observation from a normal population having mean 499 and standard deviation 120. Find (a) P[X > 600]...
-
Construct a Simulink model to plot the solution of the following equations for 0 t 2 where f(t) = 3t. Use the Ramp block in the Sources library. ij = -6x1 + 4x2 i2 = 5x - 7x, +f(t)
-
Consider a family of call options on a non-dividend-paying stock, each option being identical except for its strike price. The value of the call with strike price \(K\) is denoted by \(C(K)\). Prove...
-
Giant Jets is a French company that produces jet airplanes for commercial cargo companies. The selling price (in euros) per jet is 1,000,000. Currently the company uses actual volumes to allocate...
-
What are the two basic timing strategies? What is the intent of each? If nontax factors are irrelevant, what is the best course of action in timing strategy when you expect tax rate to increase in...
-
A man releases a stone (at rest, v=0) from the top of a tower. During the last second of its travel, the stone falls through a distance of (9/25) > H, where H is the tower's height. Find H....
-
The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system. You are required to: (a) Calculate the value of J. Duncans...
-
From the following you are to draw up a departmental trading account for Slicks Department Store for the year ending 30 June 2012. Inventory: Carpet Department White Goods Department Music Department...
-
B. Barnes is a dealer who has not kept proper books of account. At 31 October 2012 his state of affairs was as follows: During the year to 31 October 2013 his drawings amounted to 32,200. Winnings...
-
A business both buys loose tools and also makes some itself. The following data is available concerning the years ended 31 December 2010, 2011 and 2012. You are to draw up the Loose Tools Account for...
-
One of the well known accounting concepts is that of materiality. Required: (a) Explain what is meant by this concept. (b) State and explain three types of situation to which this concept might be...
-
Calculate the volume of gas you would expect to produce using 1.00 mL of 30% peroxide. Assume that the atmospheric pressure is 760 tor and the temperature of your water is 22C. Can this volume be...
-
Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...
-
Margin of error = \($5\), standard deviation = \($20\)
-
Margin of error = 18.2 cm, standard deviation = 95.2 cm
-
Margin of error = 0.5 g, standard deviation = 8.7 g
Study smarter with the SolutionInn App