Here are the trial balances for the Porter Co. and the Sutter Co. just before the books were closed on December 31, 2020. Fair market values for selected Sutter Co. accounts are shown. Porter Sutter Sutter Fair Mkt Trial Trial Balance Balance 70,000 105.000 (45,000) Values Current assets Noncurrent assets (net) Liabilities Common Stock (Par) $15 Common Stock (Par) $30 Additional paid in capital Retained earnings 1/1/20 Revenues Expenses 175,000 255,000 75,000 140,000 (45,000) (65,000) (300,000) (10,000) (65,000) (110,000) 120,000 (60,000) (20,000) (30,000) (90,000) 70,000 On December 31, 2020, Porter Co. purchased 100% of Sutter Company's stock by issuing 4,500 shares of its own stock and paying Company's stock was There were no combination costs or stock issuance costs. $100,000 cash. On that date, the market value of Porter $24 per share. Sutter Co. was dissolved immediately after the takeover and no longer existed independently. Make all necessary journal entries in Porter Company's records to recognize this acquisition.

Here are the trial balances for the Porter Co. and the Sutter Co. just before the books were closed on December 31, 2020. Fair market values for selected Sutter Co. accounts are shown. Porter Sutter Sutter Fair Mkt Trial Trial Balance Balance 70,000 105.000 (45,000) Values Current assets Noncurrent assets (net) Liabilities Common Stock (Par) $15 Common Stock (Par) $30 Additional paid in capital Retained earnings 1/1/20 Revenues Expenses 175,000 255,000 75,000 140,000 (45,000) (65,000) (300,000) (10,000) (65,000) (110,000) 120,000 (60,000) (20,000) (30,000) (90,000) 70,000 On December 31, 2020, Porter Co. purchased 100% of Sutter Company's stock by issuing 4,500 shares of its own stock and paying Company's stock was There were no combination costs or stock issuance costs. $100,000 cash. On that date, the market value of Porter $24 per share. Sutter Co. was dissolved immediately after the takeover and no longer existed independently. Make all necessary journal entries in Porter Company's records to recognize this acquisition.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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