Answered: need help figuring out Noncash assets…

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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Question

Sykora Company owns 80% of Walton Company. Information reported by Sykora and Walton as of the current year end follows.

Assume Walton issues 60,000 additional shares of previously authorized but unissued common stock solely to outside investors (none to Sykora) for $14 cash per share. Indicate the financial statement effects of this stock issuance on Sykora using the financial statement effects template.

I need help figuring out Noncash assets and Contributed Capital.

Please don't provide solution in an image based answers thanks

Transaction
Sales of shares of stock by Walton
Cash Asset
0
Noncash
Assets
0x
Balance Sheet
Liabilities +
0
Contrib.
Captial
200,000 x
Earned
Capital
0
Revenues
0
Income Statement
Expenses
0
Net income
0

Sykora Company
Shares owned of Walton
80,000
Book value of investment in Walton $720,000
Walton Company
Shares outstanding
Book value of equity
Book value per share
100,000
$900,000
$9

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