7. On December 31, 2022, Saxe Corp. was merged into Poe Corp. In the business combination, Poe issued 200,000 shares of its P10 par ordinary share, with a market price of P18 per share, for all of Saxe's common stock. The shareholders' equity section of each company's balance sheet immediately before the combination was shown below: Рое Saxe Ordinary share 1,500,000 3,000,000 Ordinary share premium 150,000 Retained earnings 1,300,000 2,500,000 850,000 6,800,000 2,500,000 Poe Corp. incurred the following costs related to the acquisition: Finder's fee - P20,000 and share issuance costs - P25,000. The working paper elimination entries prepared immediately after the combination will include:

7. On December 31, 2022, Saxe Corp. was merged into Poe Corp. In the business combination, Poe issued 200,000 shares of its P10 par ordinary share, with a market price of P18 per share, for all of Saxe's common stock. The shareholders' equity section of each company's balance sheet immediately before the combination was shown below: Рое Saxe Ordinary share 1,500,000 3,000,000 Ordinary share premium 150,000 Retained earnings 1,300,000 2,500,000 850,000 6,800,000 2,500,000 Poe Corp. incurred the following costs related to the acquisition: Finder's fee - P20,000 and share issuance costs - P25,000. The working paper elimination entries prepared immediately after the combination will include:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

7. On December 31, 2022, Saxe Corp. was
merged into Poe Corp. In the business
combination, Poe issued 200,000 shares
of its P10 par ordinary share, with a
market price of P18 per share, for all of
Saxe's common stock. The
shareholders' equity section of each
company's balance sheet immediately
before the combination was shown
below:
Рое
Saxe
Ordinary share
1,500,000
3,000,000
Ordinary share premium
150,000
Retained earnings
1,300,000
2,500,000
850,000
6,800,000
2,500,000
Poe Corp. incurred the following costs
related to the acquisition:
Finder's fee - P20,000 and share
issuance costs - P25,000.
The working paper elimination entries
prepared immediately after the
combination will include:

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