The following book and fair values were available for Big Company as of April 1,2019. Fair...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following book and fair values were available for Big Company as of April 1,2019. Fair Value Inventory Land Book Value Buildings Customer relationships S 630, 000 750, 000 1,700,000 Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 0 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 $ 600, 000 990, 000 2,000,000 800,000 (80,000) Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%) The following book and fair values were available for Big Company as of April 1,2019. Book Value Fair Value Inventory Land Buildings Customer relationships Accounts payable Common stock $630, 000 750,000 1,700, 000 0 (80,000) (2,000,000) Additional paid-in capital Retained earnings 1/1 Revenues Expenses (500,000) (360,000) (420,000) 280,000 $ 600,000 990, 000 2,000,000 800,000 (80,000) Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%) The following book and fair values were available for Big Company as of April 1,2019. Fair Value Inventory Land Book Value Buildings Customer relationships S 630, 000 750, 000 1,700,000 Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 0 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 $ 600, 000 990, 000 2,000,000 800,000 (80,000) Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%) The following book and fair values were available for Big Company as of April 1,2019. Book Value Fair Value Inventory Land Buildings Customer relationships Accounts payable Common stock $630, 000 750,000 1,700, 000 0 (80,000) (2,000,000) Additional paid-in capital Retained earnings 1/1 Revenues Expenses (500,000) (360,000) (420,000) 280,000 $ 600,000 990, 000 2,000,000 800,000 (80,000) Large Company pays $4,100,000 cash and issues 30,000 shares of its $1.5 par value common stock (fair value of $30 per share) for all of Big's common stock in a merger, after which Big will cease to exist as a separate legal entity. Stock issue costs amounts to $15,000 and Large pays $38,000 for legal fees to complete the transaction. Prepare Large's journal entry to record its acquisition of Big. (18%)
Expert Answer:
Answer rating: 100% (QA)
ANSWER Date Date Date Account Inventory Land JOURNAL ENTRIES Buildings Customer relationships G... 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 following book and fair values were available for Westmont Company as of March 1. Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50...
-
In a pre-2009 business combination, Acme Company acquired all of Brem Companys assets and liabilities for cash. After the combination Acme formally dissolved Brem. At the acquisition date, the...
-
Answer question 43 again for an option with t = .3 years. How does the time until the option expires affect the value of the call option? Question 43 Use the BlackScholes option pricing formula to...
-
A survey of 1000 adults was conducted concerning green practices. In response to a question of what was the most beneficial thing to do for the environment, 28% said buying renewable energy. a)...
-
What factors should be considered when comparing the net income figure of a partnership to that of a corporation of similar size?
-
When does a party have an automatic right to amend a pleading?
-
Madison Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnets financial statements. In...
-
Financial accounting and management accounting are two different but closely related accounting topics. Both of these branches are useful for communicating a company's performance to different groups...
-
Lowes Companies, Inc., is a home improvement company offering a range of products for maintenance, repair, remodeling, and decorating. During the recovery phase since the financial crisis of 2008,...
-
If you are the manager of a large retail bank and you find that some customers are of low value to the company and incur high cost to serve, how could you manage this customer group? Discuss the...
-
As a customer service worker, if you saw a co-worker standing around and leaning on a counter, what advice would you give?
-
Estimate how much collector area and storage capacity would be required for an active solar hot water system designed to supply the total needs for two four-person families, one living in Manchester,...
-
As the chairperson of a customer service task force, you must periodically update management on your team's work. What kind of report will you write?
-
- Marketing Chapter #9 Textbook Assignments 2.) Based on your personal strengths and weaknesses, which type of sales position do you think would be best for you? Explain your answer and also share...
-
Explain how you, as a servant leader, might support the mission of an organization such as a school, a nonprofit, or a for-profit organization by addressing the following: Discuss at least two...
-
Jamal has been the owner of a car dealership for 10 years. One day, Jamal sold one of his most expensive cars to Abdul. At the time of the sale, Jamal thought Abdul acted in a peculiar manner, but he...
-
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
-
On January 1, Dandu Corporation started a subsidiary in a foreign country. On April 1, the subsidiary purchased inventory at a cost of 120,000 local currency units (LCU). One-fourth of this inventory...
-
Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amies shares on January 1, 2009, for $120,000 when Amies net assets had a total fair value of...
-
Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its subsidiaries is headquartered in Toronto. Although this wholly owned company operates primarily in...
-
What is a CPA's reporting responsibility when associated with unaudited financial statements of a public company?
-
What levels of service may a CPA provide on pro forma financial information?
-
Statements on Standards for Accounting and Review Services (SSARS) require an accountant to report when the accountant has a. Typed client-prepared financial statements, without modification, as an...
Study smarter with the SolutionInn App