Connect Access Card For Advanced Financial Accounting
11th Edition
ISBN: 9780077723286
Author: Christensen, Theodore E.; Cottrell, David M
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.3.1E
Multiple-Choice Questions on Reported Balances [AICPA Adapted]
Select the correct answer for each of the following questions.
1. On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 20,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The
In the December 31, 20X3, combined balance sheet, additional paid-in capital should be reported at
a. $950,000.
b. $1,300,000.
c. $1,450,000.
d. $2,900,000.
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Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders’ equity figures:Atkins issues 51,000 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively?a. $104,000 and $300,000b. $110,000 and $410,000c. $192,000 and $300,000d. $212,000 and $410,000
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders’ equity figures:
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$
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$
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Atkins issues 87,000 new shares of its common stock valued at $2 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively?
Multiple Choice
$168,500 and $390,000.
$94,500 and $538,500.
$88,500 and $390,000.
$196,500 and $538,500.
Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes:
a.
Credit to common stock $ 450,000.
b.
Credit to common stock $ 300,000.
c.
Credit to common stock $ 150,000.
d.
Credit to common stock $ 600,000.
Chapter 1 Solutions
Connect Access Card For Advanced Financial Accounting
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