Assume that the following balance sheets are stated at book value. The fair market valueof James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises theneeded funds through an issue of long-term debt.Jurion Co.CurrentCurrent assets $ 12,000$ 5,300liabilitiesNet fixed36,000 Long-term debt9,800assetsEquity32,900Total$48,000Total$48,000James, Inc.Current assets $3,400 Current liabilities$ 1,300Net fixed assets 6,400 Long-term debt 1,900Equity6,600Total$9,800Total$9,800Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc.,and the purchase method of accounting is used. (Do not round intermediatecalculations and round your answer to the nearest whole number, e.g., 32.)Jurion Co., post-mergerCurrent assetsFixed assetsCurrent liabilitiesLong-term debtGoodwillEquityTotalTotal

Goodwill = Purchase consideration - Net assets Net Assets = ( Total current assets + Total fixed…

Assume that the following balance sheets are stated at book value. The fair market value of James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises the needed funds through an issue of long-term debt. Jurion Co. Current liabilities Current assets $ 12,000 $ 5,300 Net fixed 36,000 Long-term debt 9,800 assets Equity 32,900 Total $48,000 Total $48,000 James, Inc. Current assets $3,400 Net fixed assets 6,400 Current liabilities$ 1,300 Long-term debt 1,900 Equity 6,600 Total $9,800 Total $9,800 Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc., and the purchase method of accounting is used. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Jurion Co., post-merger Current liabilities Long-term debt Equity Current assets Fixed assets Goodwill Total Total

Assume that the following balance sheets are stated at book value. The fair market value of James's fixed assets is equal to $9,300. Jurion pays $16,000 for James and raises the needed funds through an issue of long-term debt. Jurion Co. Current liabilities Current assets $ 12,000 $ 5,300 Net fixed 36,000 Long-term debt 9,800 assets Equity 32,900 Total $48,000 Total $48,000 James, Inc. Current assets $3,400 Net fixed assets 6,400 Current liabilities$ 1,300 Long-term debt 1,900 Equity 6,600 Total $9,800 Total $9,800 Construct a postmerger balance sheet assuming that Jurion Co. purchases James, Inc., and the purchase method of accounting is used. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Jurion Co., post-merger Current liabilities Long-term debt Equity Current assets Fixed assets Goodwill Total Total

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

Bonds Payable has a balance of $1,184,000 and Discount on Bonds Payable has a balance of $11,840. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? a. $17,760 loss b. $11,840 loss c. $11,840 gain Od. $17,760 gain
answer in text form please (without image), Note: .Every entry should have narration please
Please provide clear step by step answer with all working like explanation computation narrations in text form
Vala
Instructions Chart of Accounts On February 1, 2020, Aggie Corporation sold its investment in Smith Corporation bonds for $12,500. The bonds have a face CHART OF ACCOUNTS value of $12,000 and a stated interest rate of 10%. The market value of the bonds on December 31, 2019 was $12,300. Aggie Corporation Required: General Ledger Prepare the journal entries to record the sale of the bonds and the adjustments of the unrealized gain or loss. ASSETS REVENUE 111 Cash 411 Sales Revenue 113 Investment in Trading Securities 431 Interest Income 114 Investment in Available-for-Sale Securities 441 Gain on Sale of Available-for-Sale General Journal 117 Interest Receivable Securities 119 Allowance for Change in Fair Value of Investment 121 Accounts Receivable EXPENSES Prepare the journal entries to record the sale of the bonds and the adjustments of the unrealized gain or loss on February 1, 2020. 500 Cost of Goods Sold 141 Inventory 152 Prepaid Insurance 511 Insurance Expense General Journal…
Kingbird, Inc. owns the following assets at December 31, 2020: Cash in bank savings account $47,000 Chequing account balance $30,000 Cash on hand 14,000 Postdated cheque from Blossom Company 440 Refund due (overpayment of income taxes) 30,000 Cash in a foreign bank (CAD equivalent) 88,000 Preferred shares acquired shortly before their fixed maturity date 15,000 Debt instrument with a maturity date of three months from the date acquired 11,000 (a1)If Kingbird follows ASPE and follows a policy of including all possible items in cash and cash equivalent, what amount should be reported as cash and cash equivalents? (Do not leave any answer field blank. Enter 0 for amounts.) Cash and cash equivalents under ASPE $enter Cash and cash equivalents under ASPE in dollars (a2)If Kingbird follows IFRS what amount should be reported as cash and cash equivalents? Cash and cash equivalents under IFRS $enter Cash and cash equivalents…
Please help me. Thankyou.
Starks products uses the cost method to account for investments in bonds. They purchased cash $150,000 of ice line inc, 6% bonds at 100 plus accrued interest of $1500. They then received a semiannual interest payment. I already have the answers for the above transactions. Journalize the following entry: sold $90,000 of the bonds at 102 plus accrued interest of $900
Hello- Please help me to find the Total debt to equity. Thanks,
Dog
Pharoah Company had the following transactions pertaining to debt securities held as an investment. Jan. 1 Dec. 31 Purchased 75, 6%, $1,000 Sheridan Company bonds for $75,000 cash. Interest is payable annually on January 1. Accrued $4,500 annual interest on Sheridan Company bonds. Journalize the purchase and the receipt of interest. Assume no interest has been accrued. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Debt Investments Cash Dec. 31 Interest Receivable Interest Revenue Debit 75,000 4,500 Credit 75,000 4,500
If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. A. $420,440 B. $457,000 C. $429,580 D. $493,560