Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Date Account Post Journal Entries Here Debit Credit

Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Date Account Post Journal Entries Here Debit Credit

Intermediate Accounting: Reporting And Analysis
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
See similar textbooks
icon
Related questions
Question

please help me

Information: 2/15/23 Alpha company purchased all the outstanding shares Omega company for $200,000 in cash and by issuing 20,000 shares of $1 par common stock with a fair value of $15 per share on the acquisition date. In addition, Alpha agreed to pay the former owners of Omega $100,000 if certain performance goals were met over the next five years. Alpha estimates the fair value of this contingency to be $45,000. To facilitate the merger, Alpha paid $30,000 to various professional service organizations. Additional fair value information is provided below. Date Omega Company information as of 2/16/23 Fair Value Receivables Inventory Copyrights Patented technology Total Assets Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liab & Equity Account Carrying Amount 90,000 82,000 130,000 900,000 1,202,000 120,000 650,000 100,000 332,000 1,202,000 Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Post Journal Entries Here 90,000 85,000 200,000 700,000 Debit 120,000 625,000 Credit
Transcribed Image Text:Information: 2/15/23 Alpha company purchased all the outstanding shares Omega company for $200,000 in cash and by issuing 20,000 shares of $1 par common stock with a fair value of $15 per share on the acquisition date. In addition, Alpha agreed to pay the former owners of Omega $100,000 if certain performance goals were met over the next five years. Alpha estimates the fair value of this contingency to be $45,000. To facilitate the merger, Alpha paid $30,000 to various professional service organizations. Additional fair value information is provided below. Date Omega Company information as of 2/16/23 Fair Value Receivables Inventory Copyrights Patented technology Total Assets Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liab & Equity Account Carrying Amount 90,000 82,000 130,000 900,000 1,202,000 120,000 650,000 100,000 332,000 1,202,000 Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Post Journal Entries Here 90,000 85,000 200,000 700,000 Debit 120,000 625,000 Credit
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SEE MORE TEXTBOOKS