1 4. JlguJIOn July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of SalamanderCompany's $10 par value stock, whentotal stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, bothbefore and after the purchase. The book value of Salamander's net assets is believed toapproximate the fair values.was trading at $22 per share. At that time, Salamander'sRequirement 1: Prepare the journal entry that Polliwog would record at the date of acquisitionon their general ledger.Requirement 2: Calculate the balance of the goodwill that would be recorded on Polliwog'sgeneral ledger, on Salamander's general ledger, and in the consolidated financial statements *

In the context of the given question, we shall take into consideration the consolidation of two…

JlguJIOn July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of Salamander Company's $10 par value stock, when it was trading at $22 per share. At that time, Salamander's total stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase. The book value of Salamander's net assets is believed to approximate the fair values. Requirement 1: Prepare the journal entry that Polliwog would record at the date of acquisition on their general ledger. Requirement 2: Calculate the balance of the goodwill that would be recorded on Polliwog's general ledger, on Salamander's general ledger, and in the consolidated financial statements *

JlguJIOn July 1, 2014, Polliwog Incorporated paid cash for 21,000 shares of Salamander Company's $10 par value stock, when it was trading at $22 per share. At that time, Salamander's total stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase. The book value of Salamander's net assets is believed to approximate the fair values. Requirement 1: Prepare the journal entry that Polliwog would record at the date of acquisition on their general ledger. Requirement 2: Calculate the balance of the goodwill that would be recorded on Polliwog's general ledger, on Salamander's general ledger, and in the consolidated financial statements *

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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