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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.)
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