Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.) BRAMBLE COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2023 Assets Cash Accounts Receivable Inventory Plant and Equipment Land Goodwill $ Total Assets $ Liabilities and Stockholders' Equity Liabilities Accounts Payable Note Payable Total Liabilities $ On January 1, 2023, Bramble Company issued 1,560 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Vaughn Company in a purchase transaction. Registration costs amounted to $1,900, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Bramble Company Vaughn Company Cash $73,500 $13,500 Accounts receivable (net) 101,000 18,300 Inventory 67,000 23,500 Plant and equipment (net) 97,000 44,500 Land 23,500 22,500 Total assets $362,000 $122,300 Accounts payable $61,500 $20,000 Notes payable 82,500 21,000 Common stock, $20 par value 100,000 40,000 Other contributed capital 60,000 22,500 Retained earnings 58,000 18,800 Total equities $362,000 $122,300 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.
Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.) BRAMBLE COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 2023 Assets Cash Accounts Receivable Inventory Plant and Equipment Land Goodwill $ Total Assets $ Liabilities and Stockholders' Equity Liabilities Accounts Payable Note Payable Total Liabilities $ On January 1, 2023, Bramble Company issued 1,560 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Vaughn Company in a purchase transaction. Registration costs amounted to $1,900, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Bramble Company Vaughn Company Cash $73,500 $13,500 Accounts receivable (net) 101,000 18,300 Inventory 67,000 23,500 Plant and equipment (net) 97,000 44,500 Land 23,500 22,500 Total assets $362,000 $122,300 Accounts payable $61,500 $20,000 Notes payable 82,500 21,000 Common stock, $20 par value 100,000 40,000 Other contributed capital 60,000 22,500 Retained earnings 58,000 18,800 Total equities $362,000 $122,300 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare a consolidated balance sheet at the date of acquisition. (List assets in order of liquidity.)
BRAMBLE COMPANY AND SUBSIDIARY
Consolidated Balance Sheet
January 2, 2023
Assets
Cash
Accounts Receivable
Inventory
Plant and Equipment
Land
Goodwill
$
Total Assets
$
Liabilities and Stockholders' Equity
Liabilities
Accounts Payable
Note Payable
Total Liabilities
$
Transcribed Image Text:On January 1, 2023, Bramble Company issued 1,560 of its $20 par value common shares with a fair value of $60 per share in exchange
for the 2,000 outstanding common shares of Vaughn Company in a purchase transaction. Registration costs amounted to $1,900, paid
in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows:
Bramble Company Vaughn Company
Cash
$73,500
$13,500
Accounts receivable (net)
101,000
18,300
Inventory
67,000
23,500
Plant and equipment (net)
97,000
44,500
Land
23,500
22,500
Total assets
$362,000
$122,300
Accounts payable
$61,500
$20,000
Notes payable
82,500
21,000
Common stock, $20 par value
100,000
40,000
Other contributed capital
60,000
22,500
Retained earnings
58,000
18,800
Total equities
$362,000
$122,300
Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.
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