On December 31, 2012, Rife Company issued 172,00 shares of its $20 par ordinary share (current...

 

Transcribed Image Text:

On December 31, 2012, Rife Company issued 172,00 shares of its $20 par ordinary share (current fair value S 35) to stockholders of Village Company in exchange for S0% outstanding shares of $5 par ordinary shares in a business combination. Out of pocket costs were legal combination fees14,200 , finder fees 12,000, auditing fees 18,000, registration fees 3,460. The financial statement of Village Co, and its fair value for the year ended 31/12/2012 are: 31/12/07 125,000 300,000 300,000 100,000 121,500 F.M.V L&EQ account payable long term debit 255000 common stock 620000 paid in excess 120000 retained earning 31/12/07 Assets Cash 35,000 46,500 235,000 520,000 110,000 account /rec. Inventories plant assets intangible assets Required: Journalize all entries for investment and the elimination entry in the date of business combination. On December 31, 2012, Rife Company issued 172,00 shares of its $20 par ordinary share (current fair value S 35) to stockholders of Village Company in exchange for S0% outstanding shares of $5 par ordinary shares in a business combination. Out of pocket costs were legal combination fees14,200 , finder fees 12,000, auditing fees 18,000, registration fees 3,460. The financial statement of Village Co, and its fair value for the year ended 31/12/2012 are: 31/12/07 125,000 300,000 300,000 100,000 121,500 F.M.V L&EQ account payable long term debit 255000 common stock 620000 paid in excess 120000 retained earning 31/12/07 Assets Cash 35,000 46,500 235,000 520,000 110,000 account /rec. Inventories plant assets intangible assets Required: Journalize all entries for investment and the elimination entry in the date of business combination.

Answer rating: 100% (QA)

Andwer 1 Journal eutries dol the business Coubhatious 31122019 dr 300... View the full answer