What amount dis Pablo recorded the investment in visa . Financial Accounting Problem 6.2.11Prior to being united in a business combination, Pablo Ltd. and VistaInc. had the following stockholders' equity figures:Pablo VistaCommon stock ($1 par value) $250,000 $60,000Additional paid-in capitalRetained earnings$120,000 $30,000$400,000 $140,000Pablo issued 70,000 new shares of its common stock valued at $5.10per share for all of the outstanding stock of Vista.Assume that Pablo acquired Vista on January 1, 2012. At what amountdid Pablo record the investment in Vista?

Provided Data:Pablo issued 70,000 new sharesValue per share issued = $5.10Purpose = To acquire 100%…

Answered: Financial Accounting Problem 6.2.11…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterD: Investments

Section: Chapter Questions

Problem D.7EX

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General Accounting Question no 1
Consider the following premerger information about Firm X and Firm Y: 222 Total earnings Shares outstanding Per-share values: Market Book Firm X $92,000 49,000 Assets from X Assets from Y Goodwill Total Assets XY LA GA Firm Y $20,500 14,000 49 $ 18 $ 20 7 zursurch of M www.am entrat human pa grawe anakmuom 2 Hoe o Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
9
PROBLEM 4 Divina Company reported the following capital balances:Share capital, 20,000 shares, P150 par P 3,000,000Share premium 200,000Retained earnings 1,500,000Divina is considering changing its capital structure through any of the following means:A. Recapitalization is effected, each shareholder receiving 2 shares of new no-par with a stated value of P50 for each share owned.B. A stock split is effected, each shareholder receiving 5 shares, par value P30, for each share owned.C. A recapitalization is effected, each shareholder receiving 1 share of new P100 par value of each share owned.D. Shareholders donate 10% of their shares to the company and these are formally retired.E. A recapitalization is effected, each shareholder receiving 4 new shares of P50 par value for each share owned.F. The par value of shares is to be reduced to P50. 1. Compute for the total share premium after recapitalization under A. 2. Compute for the total share premium after…
PROBLEM 4 Divina Company reported the following capital balances:Share capital, 20,000 shares, P150 par P 3,000,000Share premium 200,000Retained earnings 1,500,000Divina is considering changing its capital structure through any of the following means:A. Recapitalization is effected, each shareholder receiving 2 shares of new no-par with a stated value of P50 for each share owned.B. A stock split is effected, each shareholder receiving 5 shares, par value P30, for each share owned.C. A recapitalization is effected, each shareholder receiving 1 share of new P100 par value of each share owned.D. Shareholders donate 10% of their shares to the company and these are formally retired.E. A recapitalization is effected, each shareholder receiving 4 new shares of P50 par value for each share owned.F. The par value of shares is to be reduced to P50. 1. Compute for the total share premium after recapitalization under D. 2. Compute for the total share premium after recapitalization…
Problem 2 The shareholders' equity of Tony Corporation revealed the following on June 30, 2018: Preference share, P100 par vale Preference share premium Ordinary share, P15 par value Ordinary share premium Ordinary share subscribed Retained earnings Notes payable Subscriptions receivable - ordinary P230,000 80,500 525,000 275,000 5,000 190,000 400,000 40,000 28. How much is the legal capital? 29. Using the data in problem #2, how much is the additional paid in capital? 30. Using the data in problem #2, how much is the total shareholders' equity? Problem 3 A corporation declared a 40% share dividend on its 60,000 shares of P20 par ordinary shares on a day when the market price is P50. 31. How much was debited to retained earnings on the date of declaration? 32. Using information in problem #3, what is the peso dividend per ordinary share? 33. Using information if problem #3 and assuming the share capital dividend declared is 4/40, what is the share premium from stock dividends?
Intermediate Accounting 105 May I please have an explanation with solution for the exercise? Thank you
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