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 Padre Company Book Values 12/31 $ 491,250 238,500 472,500 680,000 777,500 235,000 (387,000) (121,000) (1,032,500) (660,000) 0 (70,000) (580,000) (1,016,250) 972,000 Note: Parentheses indicate a credit balance. Sol Company Book Values 12/31 $ 56,950 379,000 243,000 201,000 312,000 210,000 (120,000) (36,250) (677,500) 0 (210,000) (90,000) (243,000) (434,200) 409,000 Fair Values 12/31 $ 56,950 379,000 301,700 171,900 372,300 240,300 (120,000) (36,250) (677,500) 0 0 0 0 0 On December 31, Padre acquires Sol's outstanding stock by paying $329,000 in cash and issuing 11,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,000 as well as $8,400 in stock issuance costs.
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 Padre Company Book Values 12/31 $ 491,250 238,500 472,500 680,000 777,500 235,000 (387,000) (121,000) (1,032,500) (660,000) 0 (70,000) (580,000) (1,016,250) 972,000 Note: Parentheses indicate a credit balance. Sol Company Book Values 12/31 $ 56,950 379,000 243,000 201,000 312,000 210,000 (120,000) (36,250) (677,500) 0 (210,000) (90,000) (243,000) (434,200) 409,000 Fair Values 12/31 $ 56,950 379,000 301,700 171,900 372,300 240,300 (120,000) (36,250) (677,500) 0 0 0 0 0 On December 31, Padre acquires Sol's outstanding stock by paying $329,000 in cash and issuing 11,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,000 as well as $8,400 in stock issuance costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
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
Padre Company
Book Values
12/31
$ 491,250
238,500
472,500
680,000
777,500
235,000
(387,000)
(121,000)
(1,032,500)
(660,000)
0
(70,000)
(580,000)
(1,016,250)
972,000
Note: Parentheses indicate a credit balance.
Sol Company
Book Values Fair Values
12/31
12/31
$ 56,950
$ 56,950
379,000
379,000
243,000
301,700
201,000
171,900
312,000
210,000
(120,000)
(36,250)
(677,500)
0
(210,000)
(90,000)
(243,000)
(434,200)
409,000
372,300
240,300
(120,000)
(36,250)
(677,500)
0
0
0
0
0
0
On December 31, Padre acquires Sol's outstanding stock by paying $329,000 in cash and issuing
11,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and
accounting fees of $20,000 as well as $8,400 in stock issuance costs.
Transcribed Image Text:Required:
Determine the value that would be shown in Padre's consolidated financial statements for each of
the accounts listed:
Note: Input all amounts as positive values.
Inventory
Land
Accounts
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additic paid-in capital
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
Amounts
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