On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre- combination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory ... Patented technology (net) Land .... Buildings and equipment (net) .... Liabilities Common stock .... Additional paid-in capital TruData Book Values $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $(130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values $ 60,000 175,000 200,000 225,000 75,000 (350,000)

On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's pre- combination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory ... Patented technology (net) Land .... Buildings and equipment (net) .... Liabilities Common stock .... Additional paid-in capital TruData Book Values $(250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Book Values $(130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) Webstat Fair Values $ 60,000 175,000 200,000 225,000 75,000 (350,000)

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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On July 1, TruData Company issues 10,200 shares of its common stock with a $5 par value and a $50 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital Webstat Webstat Book Values Book Values Fair Values $ (309,200) 196,000 (122,000) 162,000 164,000 224,000 398,000 88,000 (500,000) (292,000) (8,800) TruData $ (162,000) 94,000 (154,000) 62,000 162,000 190,000 208,000 90,000 (376,000) (78,000) (36,000) $ 62,000 180,000 204,000 236,000 90,000 (354,000) On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1?
es On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital Multiple Choice $0. TruData Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) $15,000. Webstat Webstat Book Values Fair Values $ (130,000) 80,000 (150,000) 60,000 $ On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
Problems 15 through 18 are based on the following information: On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows: Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables TruData Book Values Inventory Patented technology (net) Land Webstat Book Values Webstat Fair Values $(130,000) $(250,000) 170,000 80,000 (130,000) (150,000) 140,000 60,000 190,000 145,000 230,000 180,000 400,000 200,000 Buildings and equipment (net) 100,000 75,000 Liabilities (540,000) (360,000) Common stock (70,000) (300,000) (10,000) Additional paid-in capital (30,000) 16. On its acquisition-date consolidated balance sheet, what amount should TruData report as patented technology (net)? a. $200,000 b. $230,000 c. $410,000 d. $430,000 $ 60,000…
Required information [The following information applies to the questions displayed below.] On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital TruData Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) Webstat Webstat Book Values Fair Values $ (130,000) 80,000 (150,000) 60,000 145,000 180,000 200,000 75,000 (360,000) (70,000) (30,000) $ 60,000 175,000 200,000 225,000 75,000 (350,000)
On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company’s outstanding voting shares. Webstat’s precombination book and fair values are shown below along with book values for TruData’s accounts. TruData Webstat Webstat Book Values Book Values Fair Values Revenues (1/1 to 7/1) $ (255,800 ) $ (134,000 ) Expenses (1/1 to 7/1) 160,000 80,000 Retained earnings, 1/1 (124,000 ) (168,000 ) Cash and receivables 142,000 80,000 $ 80,000 Inventory 176,000 152,000 174,000 Patented technology (net) 254,000 180,000 204,000 Land 404,000 204,000 228,000 Buildings and equipment (net) 88,000 88,000 88,000 Liabilities (530,000 ) (378,000 ) (352,000 ) Common stock (304,000 ) (68,000 ) Additional paid-in capital (10,200 ) (36,000 ) On its acquisition-date…
On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company’s outstanding voting shares. Webstat’s precombination book and fair values are shown below along with book values for TruData’s accounts. TruData Webstat Webstat Book Values Book Values Fair Values Revenues (1/1 to 7/1) $ (255,800 ) $ (134,000 ) Expenses (1/1 to 7/1) 160,000 80,000 Retained earnings, 1/1 (124,000 ) (168,000 ) Cash and receivables 142,000 80,000 $ 80,000 Inventory 176,000 152,000 174,000 Patented technology (net) 254,000 180,000 204,000 Land 404,000 204,000 228,000 Buildings and equipment (net) 88,000 88,000 88,000 Liabilities (530,000 ) (378,000 ) (352,000 ) Common stock (304,000 ) (68,000 ) Additional paid-in capital (10,200 ) (36,000 ) On its acquisition-date…
On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as of July 1? Multiple Choice O $112.000. $253,800. $322.000 $635.800.
Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction is recorded, what credit entry or entries are made? a.Common Stock $29,400. b.Common Stock $21,560 and Paid-in Capital in Excess of Par Value $7,840. c.Common Stock $7,840 and Retained Earnings $21,560. d.Common Stock $21,560 and Paid-in Capital in Excess of Stated Value $7,840.
On May 27, Buzz Off Inc. reacquired 80,000 shares of its common stock at $9 per share. On August 3, Buzz Off sold 54,000 of the reacquired shares at $12 per share. On November 14, Buzz Off sold the remaining shares at $7 per share. Journalize the transactions of May 27, August 3, and November 14. If an amount box does not require an entry, leave it blank. Date Account Debit Credit May 27 Aug. 3 Nov. 14
On May 27, Buzz Off Inc. reacquired 4,600 shares of its common stock at $19 per share. On August 3, Buzz Off sold 2,800 of the reacquired shares at $22 per share. November 14, Buzz Off sold the remaining shares at $18 per share. Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank,
Marigold Inc. has outstanding 10,600 shares of $10 par value common stock. On July 1, 2020, Marigold reacquired 105 shares at $87 per share. On September 1, Marigold reissued 62 shares at $91 per share. On November 1, Marigold reissued 43 shares at $84 per share. Prepare Marigold's journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 11/1/20
On January 3, Melrose Corporation purchased 1,800 shares of the company's $1 par value common stock as treasury stock, paying cash of $11 per share. On January 30, Melrose sold 1,450 shares of the treasury stock for cash of $12 per share. Journalize these transactions (Record debits first then credits Explanations will appear on the last line of the journal entry table.)