The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 439,750 $ 401,250 Land 776,250 1,019,250 Buildings 2,025,000 2,346,750 Customer relationships 0 873,750 Accounts payable (114,500 ) (114,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (445,000 ) Revenues (506,500 ) Expenses 325,000
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 439,750 $ 401,250 Land 776,250 1,019,250 Buildings 2,025,000 2,346,750 Customer relationships 0 873,750 Accounts payable (114,500 ) (114,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (445,000 ) Revenues (506,500 ) Expenses 325,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 32BEB: During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b....
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The following book and fair values were available for Westmont Company as of March 1.
Book Value | Fair Value | |||||
Inventory | $ | 439,750 | $ | 401,250 | ||
Land | 776,250 | 1,019,250 | ||||
Buildings | 2,025,000 | 2,346,750 | ||||
Customer relationships | 0 | 873,750 | ||||
Accounts payable | (114,500 | ) | (114,500 | ) | ||
Common stock | (2,000,000 | ) | ||||
Additional paid-in capital | (500,000 | ) | ||||
|
(445,000 | ) | ||||
Revenues | (506,500 | ) | ||||
Expenses | 325,000 | |||||
Arturo pays cash of $4,403,500 to acquire Westmont. No stock is issued and Arturo pays $50,600 for legal fees to complete the transaction.
Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No
Record the acquisition of Westmont Company.
Record the legal fees related to the combination.
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