ollowing are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values or 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 Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Sol Company Book Values Book Values Fair Values 12/31 $ Amounts 12/31 82,650 $ 488,250 225,750 632,500 219,000 792,500 173,000 627,500 334,000 225,000 255,000 (303,000) (161,000) (141,000) (49,750) (1,130,000) (550,000) (550,000) (660, 809) 330,000 12/31 (210,000) (70,000) (90,000) (560,000) (306,000) (1,823,500) (381,900) 976,000 355,000 82,650 330,000 275,300 lote: Parentheses indicate a credit balance. on December 31, Padre acquires Sol's outstanding stock by paying $367,000 in cash and issuing 12,300 shares of its own common tock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,100 as well as $9,400 in stock issuance costs. 149,100 399,880 etermine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all mounts as positive values.) 285,000 (161,000) (49,750)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Accounts
Inventory
Land
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additional paid-in capital
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
Padre
Company
Sol Company
Book Values Book Values Fair Values
$
Amounts
12/31
488,250
225,750
632,500
792,500
627,500
225,000
12/31
82,650 $
330,000
219,000
173,000
334,000
255,000
(303,000) (161,000)
(141,000)
(49,750)
(1,130,000) (550,000)
(660,000)
(210,000)
(70,000)
(90,000)
(560,000) (306,000)
(1,023,500)
976,000
(381,900)
355,000
12/31
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $367,000 in cash and issuing 12,300 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,100 as well as $9,400 in stock issuance costs.
82,650
330,000
275,300
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.)
149,100
399,800
285,000
(161,000)
(49,750)
(550,000)
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 Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Sol Company Book Values Book Values Fair Values $ Amounts 12/31 488,250 225,750 632,500 792,500 627,500 225,000 12/31 82,650 $ 330,000 219,000 173,000 334,000 255,000 (303,000) (161,000) (141,000) (49,750) (1,130,000) (550,000) (660,000) (210,000) (70,000) (90,000) (560,000) (306,000) (1,023,500) 976,000 (381,900) 355,000 12/31 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $367,000 in cash and issuing 12,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $28,100 as well as $9,400 in stock issuance costs. 82,650 330,000 275,300 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.) 149,100 399,800 285,000 (161,000) (49,750) (550,000)
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