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Inventory Land Accounts Amounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings. 1/1 Retained earnings, 12/31

Inventory Land Accounts Amounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings. 1/1 Retained earnings, 12/31

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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Vikrambahi 

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 Note: Parentheses indicate a credit balance. Padre Company Book Values Sol Company Book Values Fair Values 12/31 12/31 12/31 $ 158,000 70,500 $ 70,500 274,500 305,000 305,000 582,500 267,000 323,100 710,000 221,000 192,500 665,000 299,000 363,300 277,000 256,000 287,300 (339,000) (156,000) (156,000) (148,000) (42,500) (42,500) (940,000) (607,500) (607,500) (660,000) (210,000) (70,000) (90,000) (450,000) (290,000) (1,038,000) (343,500) 978,000 321,000 On December 31, Padre acquires Sol's outstanding stock by paying $154,000 in cash and issuing 16,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,300 as well as $10,600 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.) Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings. 1/1 Retained earnings. 12/31 Amounts
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 Note: Parentheses indicate a credit balance. Padre Company Book Values Sol Company Book Values Fair Values 12/31 12/31 12/31 $ 158,000 70,500 $ 70,500 274,500 305,000 305,000 582,500 267,000 323,100 710,000 221,000 192,500 665,000 299,000 363,300 277,000 256,000 287,300 (339,000) (156,000) (156,000) (148,000) (42,500) (42,500) (940,000) (607,500) (607,500) (660,000) (210,000) (70,000) (90,000) (450,000) (290,000) (1,038,000) (343,500) 978,000 321,000 On December 31, Padre acquires Sol's outstanding stock by paying $154,000 in cash and issuing 16,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,300 as well as $10,600 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.) Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings. 1/1 Retained earnings. 12/31 Amounts
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