1) Peter Inc. acquired 100% of theoutstandingInc. for $Common Stock of Simrancash andshares of its owncommon stock ($1 par value), whichwas trading at $___ per share at theacquisition date.(a) Determine the Acquisition Cost.(b) Pass Journal Entry in the Book ofParent Company.[Assume your own figure in the blankspaces.].

Equity - Equity is the right to use property that could also be subject to debts or other…

Answered: 1) Peter Inc. acquire outstanding Comm…

Business

Accounting

1) Peter Inc. acquire outstanding Comm Inc. for $__

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Q1. Z Corporation acquired 100% of the outstanding common stock of Sake X Corporation for $3,000,000 cash and 50,000 shares of its own common stock ($1 par value), which was trading at $30 per share at the acquisition date to Record the Acquisition Transaction on the Acquiring Incorporation's Journal. Required: Prepare The Journal Entry
Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Forest's assets and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at the time of exchange. Following selected information is also available. Par value of shares outstanding Additional Paid-in Capital Before Acquisition P400,000 P700,000 After Acquisition P500,000 P1,100,000 Based on the proceeding information, what is the number of shares was issued at the time of the exchange? 25,000 35,000 20,000 10,000 The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000 Accounts Receivable 1,371,000 Inventories 360,000 PPE 1,948,200 Accounts Payable 1,052,400 Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values of investment and PPE were P399,000 and P2,700,000, respectively. An assumed contingent liability arising from past events with a fair value amounting…
47.ABC Corp acquired 30,000 shares of XYZ Co. The shares were actively traded in the three markets. The following data were made available: PSE Nikkei NYSEMarket Price 100 105 102Transaction Cost 4 10 5Transport costs 5 10 20ABC Corp normally buys and sells XYZ's shares in PSE and designate them as investment held for FVOCI. The entry to record the acquisition would include: Dr. Investment in equity securities- FVOCI, P2,850,000 Dr Investment in debt equity - FVOCI P2,850,000 Dr Investment in equity security - FVOCI P2,970,000 Dr. Investment in debt equity- FVOCI P3,120,000
DEF company acquired the assets and assumed liabilities of GHI Company on January 1, 2022 by paying P3,000,000 and issuing its own ordinary shares. The comparison of the acquirer’s balance sheet before and after business combination transaction is as follows: Balance sheet before Acquisition Balance Sheet after Acquisition Total Assets 13,545,000 17,595,000 Total Liabilities 3,760,000 ? Total SHE 9,785,000 ? The fair value of the identifiable net asset of the acquiree is P4,835,000 and the book value of acquiree’s liabilities amounting to P1,300,000 is lower compared to its fair value by P350,000. DEF company paid acquisition related costs amounting to P50,000. What is the fair market value of the ordinary shares issued by the acquirer? a. 2,500,000 b. 2,400,000 c. 2,480,000 d. 2,450,000
eep Inc. acquired 100% of the outstanding common stock of Shy Inc. for $2,293,700 cash and 15,700 shares of its common stock ($2 par value). The stock’s market value was $42 on the acquisition date.Prepare the journal entry to record the acquisition. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 x $25 $387,500 BVD Company 20,000 X$18 $360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company $19 $23 BVD Company |$22 $28 REQUIREMENTS: Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises…
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? 2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
1. Assume the following data apply shortly after Python Co. acquires Snakes Co.: P Co. (000s) 450 S Co. (000s) Assets 200 Liabilities 250 125 CS 75 35 APIC/OCC 75 30 RE 50 10 P asset s have a fair value = 435k; S' identifiable assets have a P acquires 80% of S's outstanding voting S' assets include pre-acquisition fair value = 300k. stock for $160k cash. Goodwill of 20k, and P's assets (and S' liabilities) reflect a Loan P has made to S for 10k. The DOA consolidated Balance Sheet should show (hint:: your B/S should balance: a+b-c=d+e+f+g) : a, identifiable assets b. Goodwill (algebraic) liabilities C. d. Common Stock e. APIC/OCC f. RE g. Noncontrolling interest h. Differential
On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. In good accounting form, please. Thank you! <33
On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds Payable $40,000. Common Stock $10,000, Retained Earnings $50,000. Book values of assets and liabilities were equal to their fair values. XYZ Corporation acquired 100% of the common stock of ABC Corporation on 1/1/2020 for $120.000 Cash. Which of the following entries was prepared to record the acquisition on XYZ's books? Patents Bonds Payable Cash Investment in Subsidiary Goodwill Gain on Acquisition of Business Debit $100,000 Credit $40,000 Credit $120,000 Debit $60.000
On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds Payable $40,000, Common Stock $10,000, Retained Earnings $50,000. Book values of assets and liabilities were equal to their fair values. XYZ Corporation acquired 100% of the common stock of ABC Corporation on 1/1/2020 for $120,000 Cash. Which of the following entries was prepared to record the acquisition on XYZ's books? Patents? [Debit or credit by what amount] Bonds Payable? [Debit or credit by what amount] Cash? [Debit or credit by what amount] Investment in Subsidiary? [Debit or credit by what amount] Goodwill? [Debit or credit by what amount] Gain on Acquisition of Business? [Debit or credit by what amount]
On January 6, 20Y8, Bulldog Co. purchased 28% of the outstanding common stock of Gator Co. for $245,700. Gator Co. paid total dividends of $28,900 to all NKSHEET.AL... shareholders on June 30, 20Y8. Gator had a net loss of $56,500 for 20Y8. SO Required: GO a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal GO page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8. LANKSHEET.AL... c. How does valuing an investment under the equity method differ from valuing an investment at fair value? Chart of Accounts CHART OF ACCOUNTS Bulldog Co. General Ledger REVENUE ASSETS 410 Sales 110 Cash 611 444 Dntti Cach