1) On January 2, 20x1 Patra Company issued 80,000 new shares of its $5 par value common stock valued at $12 a share for all of Suthida Corporation's outstanding common shares. Patra paid $5,000 for the direct combination costs of the accountants. Patra paid $18,000 to register and issue shares. The fair value and book value of Suthida's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 20x1 is as follows: Cash Inventories Other current assets Land Plant assets-net Total Assets EXERCISE 01130312 CHAPTER 1 BUSINESS COMBINATIONS Accounts payable Notes payable Capital stock, $2 par Additional paid-in capital Retained Earnings Total Liabilities & Equity Patra $75,000 160,000 200,000 175,000 1,500,000 $2,110,000 $100,000 700,000 600,000 450,000 260,000 $2,110,000 Suthida $60,000 200,000 250,000 125,000 750,000 $1,385,00 $155,000 330,000 250,000 50,000 600,000 $1,385,000 Required: 1. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida survives as a separate legal entity. 2. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida will dissolve as a separate legal entity.
1) On January 2, 20x1 Patra Company issued 80,000 new shares of its $5 par value common stock valued at $12 a share for all of Suthida Corporation's outstanding common shares. Patra paid $5,000 for the direct combination costs of the accountants. Patra paid $18,000 to register and issue shares. The fair value and book value of Suthida's identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 20x1 is as follows: Cash Inventories Other current assets Land Plant assets-net Total Assets EXERCISE 01130312 CHAPTER 1 BUSINESS COMBINATIONS Accounts payable Notes payable Capital stock, $2 par Additional paid-in capital Retained Earnings Total Liabilities & Equity Patra $75,000 160,000 200,000 175,000 1,500,000 $2,110,000 $100,000 700,000 600,000 450,000 260,000 $2,110,000 Suthida $60,000 200,000 250,000 125,000 750,000 $1,385,00 $155,000 330,000 250,000 50,000 600,000 $1,385,000 Required: 1. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida survives as a separate legal entity. 2. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida will dissolve as a separate legal entity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:22:38 a. 10 n.A.
1 จาก 4
Cash
Inventories
Other current assets
Land
Plant assets-net
Total Assets
Accounts payable
Notes payable
Capital stock, $2 par
Additional paid-in capital
Retained Earnings
Total Liabilities & Equity
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1) On January 2, 20x1 Patra Company issued 80,000 new shares of its $5 par value common stock valued
at $12 a share for all of Suthida Corporation's outstanding common shares. Patra paid $5,000 for the direct
combination costs of the accountants. Patra paid $18,000 to register and issue shares. The fair value and
book value of Suthida's identifiable assets and liabilities were the same. Summarized balance sheet
information for both companies just before the acquisition on January 2, 20x1 is as follows:
●●●
EXERCISE 01130312
CHAPTER 1 BUSINESS COMBINATIONS
Patra
$75,000
160,000
200,000
175,000
1,500,000
$2,110,000
$100,000
700,000
600,000
450,000
260,000
$2,110,000
Suthida
$60,000
200,000
250,000
125,000
750,000
$1,385,00
$155,000
330,000
250,000
50,000
600,000
$1,385,000
Required:
1. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida survives as
a separate legal entity.
2. Prepare Patra's general journal entry for the acquisition of Suthida assuming that Suthida will
dissolve as a separate legal entity.
●
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