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GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 35APA
a.
To determine
Prepare Company A’s
b.
To determine
Prepare Company Z’s journal entries to record the Company S’s acquisition assuming its initial cash payment to the former owners was $610,000 and $425,000.
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Students have asked these similar questions
Libra Company is purchasing 100% of the outstanding stock of Genall Company for $700,000. Genall has the following balance sheet on the date of acquisition: (see attachment)Appraisals indicate that the following fair values for the assets and liabilities should be acknowledged: Accounts receivable . . . . . . . . . . . . . . . $300,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . 215,000 Property, plant, and equipment . . . . . . . 700,000 Computer software . . . . . . . . . . . . . . . . 130,000 Current liabilities . . . . . . . . . . . . . . . . . . 250,000 Bonds payable . . . . . . . . . . . . . . . . . . . 210,000 1. Prepare the value analysis schedule and the determination and distribution of excess schedule. 2. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of purchase.
On 1/1/2020, X Company acquired 100% of Y
Company's Net assets for $150,000 cash. The Book
value of Y's Net assets was equal to the fair value of Y
Company's net assets at the date of acquisition except
for Land (included in fixed assets) its market value
was less than the book value by $1,000, the balance
sheet data at 1/1/2020, are as follows:
item
X co
Y co
cash
404,000
150,000
Fixed assets
100,000
66,000
Liabilities
144,000
72,000
Common stock
120,000
60,000
Retained earning
240,000
84,000
required: if the acquisition are merger record the
journal entries and prepare x balance sheet after the
merger
Woolco, Inc., purchased all the outstanding stock of Paint, Inc., for $980,000. Woolco also paid $10,000 in direct acquisition costs. Just before the investment, the two companies had the following balance sheets: Assets Woolco, Inc. Paint, Inc. Accounts receivable . . . . . . . . . . . . . . . $ 900,000 $ 500,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . 600,000 200,000 Depreciable fixed assets (net) . . . . . . . . 1,500,000 600,000 Total assets. . . . . . . . . . . . . . . . . . . . . $3,000,000 $1,300,000 Liabilities and Equity Current liabilities . . . . . . . . . . . . . . . . . . $ 950,000 $ 400,000 Bonds payable . . . . . . . . . . . . . . . . . . . 500,000 200,000 Common stock ($10 par). . . . . . . . . . . . 400,000 300,000 Paid-in capital in excess of par . .…
Chapter 2 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - What does the term consolidated financial...Ch. 2 - Within the consolidation process, what is the...Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Which of the following does not represent a...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - An acquired entity has a long-term operating lease...Ch. 2 - When does gain recognition accompany a business...Ch. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - On June 1, Cline Co. paid 800,000 cash for all of...Ch. 2 - On May 1, Donovan Company reported the following...Ch. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - On its acquisition-date consolidated balance...Ch. 2 - On its acquisition-date consolidated balance...Ch. 2 - Problems 19 and 20 are based on the following...Ch. 2 - In the December 31, 2017, consolidated balance...Ch. 2 - Prob. 21PCh. 2 - The following book and fair values were available...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - SafeData Corporation has the following account...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35APACh. 2 - On February 1, Piscina Corporation completed a...Ch. 2 - Prob. 37APBCh. 2 - Prob. 38APBCh. 2 - Prob. 1DYSCh. 2 - Prob. 2DYSCh. 2 - Prob. 3DYSCh. 2 - Prob. 4DYS
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