ADVANCED ACCOUNTING
13th Edition
ISBN: 9781264046263
Author: Hoyle
Publisher: MCG
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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
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
Pam Company acquires the net assets of Jam Company for an agreed-upon price of $900,000 on July 1, 2015. The value is tentatively assigned as follows:Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 (5-year life)Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 (20-year life)Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150,000)Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000Values are subject to change during the measurement period. Depreciation is taken to the nearest month. The measurement period expires on July 1, 2016, at which time the fair values of the equipment and building as of the acquisition date…
Duko Corporation is acquiring the net assets, exclusive of cash, of Weber Company as of January 1, 2015, at which time Weber Company’s balance sheet is as follows: (see attachment)Duko Corporation feels that the following fair values should be used for Weber’s book values:Cash (no change) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000Investment in marketable securities . . . . . . . . . . . . . . . . . . 150,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000Buildings (no change) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000Income tax payable (no change). . . . . . . . . . . . . . . . . . . . 190,000Duko will issue 20,000 shares of its common…
Chapter 2 Solutions
ADVANCED ACCOUNTING
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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