On July 1, 2021, the Statement of Financial Position of Hershey Co. and Kisses Corp. are as follows Hershey Co. Kisses Corp. Assets 4,000,000 2,500,000 Liabilities 1,500,000 800,000 Share Capital, no par 2,000,000 Share Capital, P100 par 1,000,000 Share Premium 700,000 300,000 Retained earnings (200,000) 400,000 Hershey Co. on this date, agreed to acquire all the assets, and assume all the liabilities of Kisses Corp. in exchange for shares of stock that it will issue. The stock of Hershey Co. is selling in the market at P50 per share. The assets of Kisses Corp. are to be appraised, and Hershey Co. is to issu shares of its stock with a market value equal to that of the net assets transferred by Kisses Corp. The value of the assets of Kisses Corp., per appraisal, increased by P300,000. The share capital reflecting the combination under acquisition method is:

On July 1, 2021, the Statement of Financial Position of Hershey Co. and Kisses Corp. are as follows Hershey Co. Kisses Corp. Assets 4,000,000 2,500,000 Liabilities 1,500,000 800,000 Share Capital, no par 2,000,000 Share Capital, P100 par 1,000,000 Share Premium 700,000 300,000 Retained earnings (200,000) 400,000 Hershey Co. on this date, agreed to acquire all the assets, and assume all the liabilities of Kisses Corp. in exchange for shares of stock that it will issue. The stock of Hershey Co. is selling in the market at P50 per share. The assets of Kisses Corp. are to be appraised, and Hershey Co. is to issu shares of its stock with a market value equal to that of the net assets transferred by Kisses Corp. The value of the assets of Kisses Corp., per appraisal, increased by P300,000. The share capital reflecting the combination under acquisition method is:

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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