Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair value for Sol Company accounts. Items Cash Receivables Padre Company Book Values 12/31 $ 491,250 238,500 Sol Company Book Values 12/31 $ 56,950 379,000 Fair Values 12/31 $ 56,950 379,000 Inventory 472,500 243,000 301,700 Land 680,000 201,000 171,900 Building and equipment (net) 777,500 312,000 372,300 Franchise agreements 235,000 210,000 240,300 Accounts payable (387,000) (120,000) (120,000) Accrued expenses (121,000) (36,250) Long-term liabilities (1,032,500) (677,500) (36,250) (677,500) Common stock-$20 par value (660,000) е Common stock-$5 par value (210,000) Additional paid-in capital Retained earnings, 1/1 (70,000) (90,000) (580,000) (243,000) Revenues (1,016, 250) (434,200) Expenses 972,000 409,000 Note: Parentheses indicate a credit balance. 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. 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. Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair value for Sol Company accounts. Items Cash Receivables Padre Company Book Values 12/31 $ 491,250 238,500 Sol Company Book Values 12/31 $ 56,950 379,000 Fair Values 12/31 $ 56,950 379,000 Inventory 472,500 243,000 301,700 Land 680,000 201,000 171,900 Building and equipment (net) 777,500 312,000 372,300 Franchise agreements 235,000 210,000 240,300 Accounts payable (387,000) (120,000) (120,000) Accrued expenses (121,000) (36,250) Long-term liabilities (1,032,500) (677,500) (36,250) (677,500) Common stock-$20 par value (660,000) е Common stock-$5 par value (210,000) Additional paid-in capital Retained earnings, 1/1 (70,000) (90,000) (580,000) (243,000) Revenues (1,016, 250) (434,200) Expenses 972,000 409,000 Note: Parentheses indicate a credit balance. 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. 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. Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair value
for Sol Company accounts.
Items
Cash
Receivables
Padre Company
Book Values 12/31
$ 491,250
238,500
Sol Company
Book Values
12/31
$ 56,950
379,000
Fair Values
12/31
$ 56,950
379,000
Inventory
472,500
243,000
301,700
Land
680,000
201,000
171,900
Building and equipment (net)
777,500
312,000
372,300
Franchise agreements
235,000
210,000
240,300
Accounts payable
(387,000)
(120,000)
(120,000)
Accrued expenses
(121,000)
(36,250)
Long-term liabilities
(1,032,500)
(677,500)
(36,250)
(677,500)
Common stock-$20 par value
(660,000)
е
Common stock-$5 par value
(210,000)
Additional paid-in capital
Retained earnings, 1/1
Revenues
(70,000)
(90,000)
(580,000)
(243,000)
(1,016, 250)
(434,200)
Expenses
972,000
409,000
Note: Parentheses indicate a credit balance.
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.
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.
Accounts
Inventory
Land
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additional paid-in capital
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
Amounts
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