Following are preacquisition financial balances for Padre Company and Sol Company as ofDecember 31. Also included are fair values for Sol Company accounts.CashReceivablesInventoryItemsLandBuilding and equipment (net)Franchise agreementsAccounts payableAccrued expensesLong-term liabilitiesCommon stock-$20 par valueCommon stock-$5 par valueAdditional paid-in capitalRetained earnings, 1/1RevenuesExpensesPadre CompanyBook Values12/31$ 491,250238,500472,500680,000777,500235,000(387,000)(121,000)(1,032,500)(660,000)0(70,000)(580,000)(1,016,250)972,000Note: Parentheses indicate a credit balance.Sol CompanyBook Values Fair Values12/3112/31$ 56,950$ 56,950379,000379,000243,000301,700201,000171,900312,000210,000(120,000)(36,250)(677,500)0(210,000)(90,000)(243,000)(434,200)409,000372,300240,300(120,000)(36,250)(677,500)000000On December 31, Padre acquires Sol's outstanding stock by paying $329,000 in cash and issuing11,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal andaccounting fees of $20,000 as well as $8,400 in stock issuance costs. Required:Determine the value that would be shown in Padre's consolidated financial statements for each ofthe accounts listed:Note: Input all amounts as positive values.InventoryLandAccountsBuildings and equipmentFranchise agreementsGoodwillRevenuesAdditic paid-in capitalExpensesRetained earnings, 1/1Retained earnings, 12/31Amounts

To consolidate we must add book values of parent company and fair values of subsidiary…

Answered: Following are preacquisition financial…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Manji
The financial statements for Armstrong and Blair companies for the current year are summarized below: Blair Company Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets Current liabilities. Long-term debt (10%) Share capital Contributed surplus Retained earnings Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net earnings Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ Selected data from the financial statements for the previous year follows: Blair Company Armstrong Company 30,000 82,000 94,000 $ 50,000 28,000 86,000 $ $ 18 30% 46,000 15,000 Armstrong Company $ 36,000 $ 32,000 30,000 40,000 205,000 35,000 170,000 95,000 $ 536,000 $ 125,000 94,000 180,000 40,000 97,000 $ 536,000 $ 550,000…
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The current assets and liabilities sections of the comparative balance sheets of Regent Inc., a private entity reporting under ASPE, at December 31 are presented below, along with the income statement: REGENT INC. Comparative Balance Sheet Accounts 2024 2023 Cash $27,720 $29,400 Accounts receivable 17,920 11,480 Inventory 9,100 12,880 Prepaid expenses 2,100 1,624 Accounts payable 12,040 10,080 Accrued expenses payable 1,400 2,240 Dividends payable 6,720 4,760 Income tax payable 1,904 3,304 REGENT INC. Income Statement Year Ended October 31, 2024 Sales $175,000 Cost of goods sold 109,200 Gross profit 65,800 Operating expenses $24,640 Depreciation expense 6,440 Loss on sale of equipment 2,240 33,320 Profit before income tax 32,480 Income tax expense 8,120 Profit for the year $24,360 Instructions Prepare the operating section of the cash flow statement using the direct method.
Alpesh
Please answer all requirements
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 Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Padre Company Book Values 12/31 $ 115,250 240,750 440,000 680,000 Accounts 835,000 313,000 Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 (319,000) (127,000) (957,500) (660,000) 0 (70,000) (437,500) (1,015,000) 962,000 Sol Company Amounts Book Values 12/31 $ 54,400 353,000 286,000 163,000 294,000 229,000 (147,000) (30,000) (597,500) 0 (210,000) (90,000) (284,000) (399,900) 379,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires…
The information on the following page was obtained from the records of Breanna Incorporated: $ 10, 200 50,800 128,000 9,500 64,500 Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Net sales Equipment Selling, general, and administrative expenses Common stock (8,200 shares) Accounts payable Retained earnings, 1/1/22 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2022 Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year ended December 31, 2022. There were no changes in paid-in capital during the year. Required: a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2022, and a balance sheet at December 31, 2022, for Breanna Incorporated. Based on the financial statements that you have prepared for part a,…
Solar Electric Inc. Balance Sheet 32 Marks ACB As at December 31, 2023 Account Title Debit Credit Assets Current Assets Cash 100,649 Accounts Receivable 35,860 Interest Rceivable 9,113 Prepaid Insurance 7,370 Short-Term Investment- Citi Inc 237,000 Short-Term Investment- Bonds 135,000 Inventory 90,640 Valuation Allowance for Fair Value Adjustment 50,700 Total Current Assets 666,332 Non-current Assets Investment in HSBC Inc. Common Shares 503,840 Long-Term Investment- Bond 145,000 Property, Plant & Equipment 280,000 Accumulated Depreciation 86,000 Total Non-Current Assets 842,840 Total Assets 1,509,172 Liabilities Current Liabilities Accounts Payable 212,400 Interest Payable 31,167 Unearned Revenue 21,000 Total Current Liabilities 264,567 Long-Term Liabilities Bonds Payable 340,000 Discount on Bonds Payable 15,741 Bank Loan 225,000 Total-Long Term Liabilities 549,259 Total Liabilities 813,826 Shareholders Equity Common Shares 362,000 Preferred Shares 80,000 Retained Earnings 348,385…
Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash balance of $24,700, accounts payable of $96,526, common stock of $401,347, retained earnings of $501,930, inventory of $205,420, other assets equal to $77,911, net plant and equipment of $706,520, short-term notes payable of $30,000, and accounts receivable of $142,714. Long-Term Debt %24
Hansaben
Determine the amount of long-term debt for ABC Co. using the following balance sheet information: cash balance of $24,429, accounts payable of $97,423, common stock of $400,517, retained earnings of $500,749, inventory of $207,068, other assets equal to $77,098, net plant and equipment of $706,191, short-term notes payable of $30,000, and accounts receivable of $142,586.

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