E1-3 Prepare stockholders' equity section The stockholders' equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands) Capital stock, $10 par Other paid-in capital Retained earnings Stockholders' equity Pop $3,000 400 1,200 $4,600 Son $1,600 800 600 $3,000 On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son's shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination. Required Prepare the stockholders' equity section of Pop Corporation's balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please help me jn this sir accounting question 

E1-3 Prepare stockholders' equity section
The stockholders' equities of Pop Corporation and Son Corporation at January 1 were as follows (in
thousande)
Capital stock, $10 par
Other paid-in capital
Retained earnings
Stockholders' equity
Pop
$3,000
400
1,200
$4,600
Son
$1,600
800
600
$3,000
On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son's
shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and
$20,000 for other direct costs of combination.
Required
Prepare the stockholders' equity section of Pop Corporation's balance sheet immediately after the
acquisition on January 2. (Hint: Prepare the journal entry.)
Transcribed Image Text:E1-3 Prepare stockholders' equity section The stockholders' equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousande) Capital stock, $10 par Other paid-in capital Retained earnings Stockholders' equity Pop $3,000 400 1,200 $4,600 Son $1,600 800 600 $3,000 On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son's shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination. Required Prepare the stockholders' equity section of Pop Corporation's balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education