E 1-3 Prepare stockholders’ equity section The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands): Pop Son Capital stock, $10 par $3,000 $1,600 Other paid-in capital 400 800 Retained earnings 1,200 600 Stockholders’ equity $4,600 $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.)
E 1-3 Prepare stockholders’ equity section The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands): Pop Son Capital stock, $10 par $3,000 $1,600 Other paid-in capital 400 800 Retained earnings 1,200 600 Stockholders’ equity $4,600 $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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E 1-3 Prepare stockholders’ equity section
-
The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands):
Pop
Son
Capital stock, $10 par
$3,000
$1,600
Other paid-in capital
400
800
Retained earnings 1,200
600
Stockholders’ equity
$4,600
$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 thejournal entry .)
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