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 Inventory Land Accounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Sol Company Book Values Book Values Fair Values $ Amounts 12/31 584,750 290, 250 535,000 647,500 645,000 267,000 (372,000) (133,000) 12/31 84, 100 $ Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $349,000 in cash and issuing 11,400 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $23,400 as well as $12,800 in stock issuance costs. 392,000 249,000 200,000 237,000 174,000 (141,000) (38,500) (1,082,500) (567,500) (660,000) 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.) (210,000) (90,000) (70,000) (592,500) (267,000) (1,051,500) (373,100) 992,000 351,000 12/31 84,100 392,000 303,400 177,500 304,600 210,100 (141,000) (38,500) (567,500)

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
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
Inventory
Land
Accounts
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additional paid-in capital
$
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
Padre
Company
Amounts
Sol Company
Book Values Book Values Fair Values
12/31
12/31
84, 100
392,000
249,000
200,000
237,000
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $349,000 in cash and issuing 11,400 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $23,400 as well as $12,800 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.)
584,750
290, 250
535,000
647,500
645,000
267,000
174,000
(372,000) (141,000) (141,000)
(133,000)
(38,500)
(38,500)
(567,500)
(1,082,500) (567,500)
(660,000)
$
(210,000)
(70,000)
(90,000)
(592,500) (267,000)
(1,051,500)
992,000
(373,100)
351,000
12/31
84,100
392,000
303,400
177,500
304, 600
210, 100
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 Inventory Land Accounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital $ Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Amounts Sol Company Book Values Book Values Fair Values 12/31 12/31 84, 100 392,000 249,000 200,000 237,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $349,000 in cash and issuing 11,400 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $23,400 as well as $12,800 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.) 584,750 290, 250 535,000 647,500 645,000 267,000 174,000 (372,000) (141,000) (141,000) (133,000) (38,500) (38,500) (567,500) (1,082,500) (567,500) (660,000) $ (210,000) (70,000) (90,000) (592,500) (267,000) (1,051,500) 992,000 (373,100) 351,000 12/31 84,100 392,000 303,400 177,500 304, 600 210, 100
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