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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 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 Accounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Padre Company Book Values Book Values 12/31 12/31 $ 115,250 $ 54,400 240,750 353,000 440,000 286,000 680,000 163,000 835,000 294,000 313,000 229,000 (319,000) (147,000) (127,000) (30,000) (957,500) (597,500) (660,000) 0 (70,000) (437,500) (1,015,000) 962,000 Retained earnings, 1/1 Retained earnings, 12/31 Sol Company (210,000) (90,000) (284,000) (399,900) 379,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $253,500 in cash and issuing 14,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,700 as well as $14,700 in stock issuance costs. Amounts Fair Values 12/31 $ 54,400 353,000 341,300 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. 142,500 363,700 259,900 (147,000) (30,000) (597,500) 0 0 B

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 Accounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Padre Company Book Values Book Values 12/31 12/31 $ 115,250 $ 54,400 240,750 353,000 440,000 286,000 680,000 163,000 835,000 294,000 313,000 229,000 (319,000) (147,000) (127,000) (30,000) (957,500) (597,500) (660,000) 0 (70,000) (437,500) (1,015,000) 962,000 Retained earnings, 1/1 Retained earnings, 12/31 Sol Company (210,000) (90,000) (284,000) (399,900) 379,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $253,500 in cash and issuing 14,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,700 as well as $14,700 in stock issuance costs. Amounts Fair Values 12/31 $ 54,400 353,000 341,300 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. 142,500 363,700 259,900 (147,000) (30,000) (597,500) 0 0 B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 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 Sol's outstanding stock by paying $253,500 in cash and issuing 14,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,700 as well as $14,700 in stock issuance costs. Fair Values 12/31 $ 54,400 353,000 341,300 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. 142,500 363,700 259,900 (147,000) (30,000) (597,500) 0 0 0 0 0 0
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 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 Sol's outstanding stock by paying $253,500 in cash and issuing 14,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,700 as well as $14,700 in stock issuance costs. Fair Values 12/31 $ 54,400 353,000 341,300 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. 142,500 363,700 259,900 (147,000) (30,000) (597,500) 0 0 0 0 0 0
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