Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included a 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 Accounts Padre Company Book Values Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 $ Amounts 12/31 Book Values 12/31 317,000 59,400 $ 240,000 381,000 520,000 296,000 762,500 170,000 Sol Company (70,000) (402, 500) (210,000) (90,000) (290,000) Fair Values 672,500 321,000 268,800 260,000 237,000 (354,000) (149,000) (149,000) (109,000) (40,000) (40,000) (1,132,500) (660,000) (660,000) (660,000) (980,000) (395,400) 936,000 370,000 12/31 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $219,000 in cash and issuing 15,600 shares of its own c stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,200 as well as $13,200 in stock issuan 59,400 381,000 349,100 142,900 387,500 Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input amounts as positive values.)
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included a 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 Accounts Padre Company Book Values Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 $ Amounts 12/31 Book Values 12/31 317,000 59,400 $ 240,000 381,000 520,000 296,000 762,500 170,000 Sol Company (70,000) (402, 500) (210,000) (90,000) (290,000) Fair Values 672,500 321,000 268,800 260,000 237,000 (354,000) (149,000) (149,000) (109,000) (40,000) (40,000) (1,132,500) (660,000) (660,000) (660,000) (980,000) (395,400) 936,000 370,000 12/31 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $219,000 in cash and issuing 15,600 shares of its own c stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,200 as well as $13,200 in stock issuan 59,400 381,000 349,100 142,900 387,500 Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input amounts as positive values.)
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
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
Book Values
12/31
Amounts
Sol Company
Book
Values
12/31
Fair Values
12/31
59,400
381,000
349, 100
142,900
387,500
268,800
(149,000)
(40,000)
(1,132,500) (660,000) (660,000)
(660,000)
317,000
240,000
381,000
520,000 296,000
762,500 170,000
672,500
321,000
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $219,000 in cash and issuing 15,600 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,200 as well as $13,200 in stock issuance costs.
(70,000)
(402, 500)
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.)
59,400 $
260,000 237,000
(354,000) (149,000)
(109,000)
(40,000)
(210,000)
(90,000)
(290,000)
(980,000) (395,400)
936,000 370,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Step 1: Meaning of Investment in Associates and Joint venture and Subsidiary
VIEWStep 2: Calculation of Goodwill/Capital Reserve
VIEWStep 3: Calculation of Additional Paid Up capital and Retained Earning, 12/31.
VIEWStep 4: Prepare Amounts to be shown in consolidated statements of Listed Accounts
VIEWSolution
VIEW
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education