The following book and fair values were available for Beech Company as of June 1: Inventory Land Buildings Trademarks Items Accounts payable Common stock 717 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 817,500 2,005,000 0 $363,500 1,087,500 2,314,750 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 0 0 0 9 0 Alder Company pays $4,050,000 cash and issues 22,800 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,500, and Alder pays $44,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

The following book and fair values were available for Beech Company as of June 1: Inventory Land Buildings Trademarks Items Accounts payable Common stock 717 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 817,500 2,005,000 0 $363,500 1,087,500 2,314,750 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 0 0 0 9 0 Alder Company pays $4,050,000 cash and issues 22,800 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,500, and Alder pays $44,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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