Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also include 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 Book Values 12/31 Sol Company Book Values 12/31 56,700 $ 354,750 242,250 312,000 482,500 174,000 720,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290,800 (152,000) (54,500) (532,500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 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 include 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 Book Values 12/31 Sol Company Book Values 12/31 56,700 $ 354,750 242,250 312,000 482,500 174,000 720,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290,800 (152,000) (54,500) (532,500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounts
Inventory
Land
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additional paid-in capital
+
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
Amounts
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, 1/1
Revenues
Expenses
Padre
Company
Book Values
12/31
354,750
242, 250
482,500
720,000
Sol Company
Book
Values
12/31
56,700 $
312,000
174,000
194,000
837,500
332,000
242,000
252,000
(352,000) (152,000)
Fair Values
(210,000)
(70,000)
(90,000)
(422,500) (260,000)
(1,000,000) (354,700)
947,000 333,000
12/31
56,700
312,000
229,900
171,200
395,300
290, 800
(152,000)
(189,000)
(54,500)
(54,500)
(1,132,500) (532,500) (532,500)
(660,000)
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 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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