Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values $ 12/31 62,450 $ 12/31 306,750 257,250 376,000 590,000 291,000 805,000 140,000 697,500 335,000 230,000 250,000 (364,000) (205,000) (156,000) (39,750) (955,000) (585,000) (660,000) (210,000) (70,000) (90,000) (625,000) (297,000) (990,500) (364,700) 934,000 337,000 12/31 62,450 376,000 344,200 119,800 402,500 285,200 (205,000) (39,750) (585,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,400 as well as $9,900 in stock issuance costs. Padre's consolidated financial statements for each of the accounts listed. (Input all

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values
for Sol Company accounts.
Cash
Receivables
Inventory
Land
Building and equipment (net)
Franchise agreements
Accounts payable
Accrued expenses
Longterm liabilities
Common stock-$20 par value
Common stock-$5 par value
Additional paid-in capital
Retained earnings, 1/11
Revenues
Expenses
Padre
Company
Sol Company
Book Values Book Values Fair Values
$
12/31
12/31
306,750 62,450 $
257,250 376,000
590,000 291,000
805,000 140,000
697,500
335,000
12/31
(210,000)
(70,000) (90,000)
(625,000) (297,000)
(990,500) (364,700)
934,000
337,000
62,450
376,000
344,200
119,800
402,500
285,200
(205,000)
230,000 250,000
(364,000) (205,000)
(156,000)
(955,000) (585,000) (585,000)
(39,750)
(39,750)
(660,000)
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,400 as well as $9,900 in stock issuance costs.
Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all
amounts as positive values.)
Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/11 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values $ 12/31 12/31 306,750 62,450 $ 257,250 376,000 590,000 291,000 805,000 140,000 697,500 335,000 12/31 (210,000) (70,000) (90,000) (625,000) (297,000) (990,500) (364,700) 934,000 337,000 62,450 376,000 344,200 119,800 402,500 285,200 (205,000) 230,000 250,000 (364,000) (205,000) (156,000) (955,000) (585,000) (585,000) (39,750) (39,750) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,400 as well as $9,900 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values
for Sol Company accounts.
Cash
Receivables
Inventory
Land
Building and equipment (net)
Franchise agreements
Accounts payable
Accrued expenses
Longterm liabilities
Common stock-$20 par value
Common stock-$5 par value
Additional paid-in capital
Retained earnings, 1/11
Revenues
Expenses
Padre
Company
Sol Company
Book Values Book Values Fair Values
$
12/31
12/31
306,750 62,450 $
257,250 376,000
590,000 291,000
805,000 140,000
697,500
335,000
12/31
(210,000)
(70,000) (90,000)
(625,000) (297,000)
(990,500) (364,700)
934,000
337,000
62,450
376,000
344,200
119,800
402,500
285,200
(205,000)
230,000 250,000
(364,000) (205,000)
(156,000)
(955,000) (585,000) (585,000)
(39,750)
(39,750)
(660,000)
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,400 as well as $9,900 in stock issuance costs.
Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all
amounts as positive values.)
Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/11 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values $ 12/31 12/31 306,750 62,450 $ 257,250 376,000 590,000 291,000 805,000 140,000 697,500 335,000 12/31 (210,000) (70,000) (90,000) (625,000) (297,000) (990,500) (364,700) 934,000 337,000 62,450 376,000 344,200 119,800 402,500 285,200 (205,000) 230,000 250,000 (364,000) (205,000) (156,000) (955,000) (585,000) (585,000) (39,750) (39,750) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $25,400 as well as $9,900 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)
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