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how is additional paid-in capital and common stock figures calculated

how is additional paid-in capital and common stock figures calculated

FINANCIAL ACCOUNTING
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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how is additional paid-in capital and common stock figures calculated?

Homework help starts here! ASK AN EXPERT 2 CHAT VX MATH SOLVER E Q&A Library Book Value Fair Value Inventory. Land... Buildings. C... Sr no. Date Particulars Post Ref Debit Credit Professional servcie expense A/c To Cash A/c 42,000 42,000 (Being legal service paid) EXPERT Additional Paid in Capital A/c To Cash A/c (Being stock issue expenses recorded) SOLUTION 25,000 25,000 Inventory A/c Land A/c Buildings A/c Customer Relationship A/c Goodwill A/c To Accounts Payable A/c To Common Stock A/c To Additional Paid In Capital A/c To Cash A/c (Being acquisiton entry passed A/c) 600,000 990,000 2,000,000 800,000 690,000 80,000 40,000 960,000 4,000,000 Working Notes: Goodwill Calculation: Particulars Amount Fair Value of Assets $ 600,000 $ 990.000 Inventory A/c Land A/c Buildings A/c Customer Relationship A/c |(-) Accounts Payable Fair Value of the company Amount Paid FOLLOW-UP QUESTIONS $ 2,000,000 800,000 (80,000) $ 4,310,000 $ 5,000,000 Goodwill 690,000
Transcribed Image Text:Homework help starts here! ASK AN EXPERT 2 CHAT VX MATH SOLVER E Q&A Library Book Value Fair Value Inventory. Land... Buildings. C... Sr no. Date Particulars Post Ref Debit Credit Professional servcie expense A/c To Cash A/c 42,000 42,000 (Being legal service paid) EXPERT Additional Paid in Capital A/c To Cash A/c (Being stock issue expenses recorded) SOLUTION 25,000 25,000 Inventory A/c Land A/c Buildings A/c Customer Relationship A/c Goodwill A/c To Accounts Payable A/c To Common Stock A/c To Additional Paid In Capital A/c To Cash A/c (Being acquisiton entry passed A/c) 600,000 990,000 2,000,000 800,000 690,000 80,000 40,000 960,000 4,000,000 Working Notes: Goodwill Calculation: Particulars Amount Fair Value of Assets $ 600,000 $ 990.000 Inventory A/c Land A/c Buildings A/c Customer Relationship A/c |(-) Accounts Payable Fair Value of the company Amount Paid FOLLOW-UP QUESTIONS $ 2,000,000 800,000 (80,000) $ 4,310,000 $ 5,000,000 Goodwill 690,000
Homework help starts here! ASK AN EXPERT CHAT VX MATH SOLVER E Q&A Library Book Value Fair Value Inventory. Land... Buildings. C... Question W SLuuents wiTo ve Seen uis questioii disO LIKE. ACCOUNTING FINANCIAL ACCOUNTING 10th Edition The following book and fair values were available for Westmont Company as of March 1. Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo's journal entries to record its acquisition of Westmont. ISBN: 9781259964947 FIND Author: Libby Publisher: MCG Fair Value Chapter 1: F... v Section: Ch... Book Value Inventory. Land. Buildings. Customer relationships Accounts payable Common stock $ 630,000 750,000 1,700,000 -0- $ 600,000 990,000 2,000,000 800,000 (80,000) Problem 10 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 9 Not helpful? See similar books Additional paid-in capital. Retained earnings, 1/1. Revenues Expenses Transcribed Image Text: Book Value Fair Value Inventory. Land... Buildings. Customer relationships Accounts payable. Common stock Learn more about Consolidation Additional paid-in capital Retained earnings, 1/1. Revenues. Expenses $ 630,000 750,000 1,700,000 -0- $ 600,000 990,000 2,000,000 800,000 EXPERT SOLUTION (80,000) (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 !!!
Transcribed Image Text:Homework help starts here! ASK AN EXPERT CHAT VX MATH SOLVER E Q&A Library Book Value Fair Value Inventory. Land... Buildings. C... Question W SLuuents wiTo ve Seen uis questioii disO LIKE. ACCOUNTING FINANCIAL ACCOUNTING 10th Edition The following book and fair values were available for Westmont Company as of March 1. Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo's journal entries to record its acquisition of Westmont. ISBN: 9781259964947 FIND Author: Libby Publisher: MCG Fair Value Chapter 1: F... v Section: Ch... Book Value Inventory. Land. Buildings. Customer relationships Accounts payable Common stock $ 630,000 750,000 1,700,000 -0- $ 600,000 990,000 2,000,000 800,000 (80,000) Problem 10 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 9 Not helpful? See similar books Additional paid-in capital. Retained earnings, 1/1. Revenues Expenses Transcribed Image Text: Book Value Fair Value Inventory. Land... Buildings. Customer relationships Accounts payable. Common stock Learn more about Consolidation Additional paid-in capital Retained earnings, 1/1. Revenues. Expenses $ 630,000 750,000 1,700,000 -0- $ 600,000 990,000 2,000,000 800,000 EXPERT SOLUTION (80,000) (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 !!!
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