On July 1, TruData Company issues 10,200 shares of its common stock with a $5 par value and a $50 fairvalue in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombinationbook and fair values are shown below along with book values for TruData's accounts.Revenues (1/1 to 7/1)Expenses (1/1 to 7/1)Retained earnings, 1/1Cash and receivablesInventoryPatented technology (net)LandBuildings and equipment (net)LiabilitiesCommon stockAdditional paid-in capitalWebstatWebstatBook Values Book Values Fair Values$ (309,200)196,000(122,000)162,000164,000224,000398,00088,000(500,000)(292,000)(8,800)TruData$ (162,000)94,000(154,000)62,000162,000190,000208,00090,000(376,000)(78,000)(36,000)$62,000180,000204,000236,00090,000(354,000)On its acquisition-date consolidated balance sheet, what amount should TruData report as retained earnings as ofJuly 1?

Retained Earning to be reported by TruData as of July 1 can be calculated from the following…

Answered: On July 1, TruData Company issues…

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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On July 1, 2021, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $12 par preferred stock for a lump sum of $140,000. At this date Nall's common stock was selling for $18 per share and the preferred stock for $24 per share. A. Record the journal entry for this allocation and insurance using the proportional method. Record the journal entry for this allocation and issuance using the incremental method, assuming you do not have the market value for preferred stock.
Top-Value Corporation has 256,500 shares of $35 par common stock outstanding. On September 2, Top-Value Corporation declared a 3% stock dividend to be issued November 30 to stockholders of record on October 3. The market price of the stock was $50 per share on September 2. Required: Journalize the entries required on September 2, October 3, and November 30. If no entry is required, simply skip to the next transaction. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Questions # 21-22 are based on the following: Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2021, Clothing Emporium had the following transactions relating to shareholders' equity: B. C. D. 21. What is the ending balance in the Retained Earnings account at the end of 2021? A. Jan. 1 Feb. 15 May 8 Oct. 2 ABCD B. Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. $50,000. $370,000. $420,000. $100,000. 22. What is the total stockholders' equity at the end of 2021? A. $370,000. $420,000. C. $470,000. D. $320,000.
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Alma Corp. issues 1,120 shares of $7 par common stock at $15 per share. When the transaction is journalized, credits are made to a.Common Stock, $7,840 and Paid-In Capital in Excess of Par—Common Stock, $8,960. b.Common Stock, $16,800. c.Common Stock, $8,960 and Paid-In Capital in Excess of Stated Value, $7,840. d.Common Stock, $7,840 and Retained Earnings, $8,960.
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On March 15, American eagle declares a quarterly cash dividend of $0.035 per-share payable on April 13 to all stockholders of record on March 30. Record American Eagle‘s declaration and payment of cash dividends for its 228 million shares. (If no entry is required for a transaction/event, select “ no journal entry required” in the first account field enter your answer in dollars not in millions)
Flint Architects Ltd. is a private company reporting under ASPE. It is authorized to issue an unlimited number of common and $3 cumulative preferred shares. The following is an alphabetical list of its adjusted accounts at March 31, 2021, its fiscal year end. All accounts have normal balances. Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Cash dividends-common Cash dividends-preferred Common shares Consulting revenue Depreciation expense Dividends payable Equipment eTextbook and Media List of Accounts. $20,800 36,000 eTextbook and Media 24,800 57,000 38,000 List of Accounts 4,500 75,000 412,000 13,000 15,000 223,000 There are 1.500 preferred and 75,000 common shares issued. Income tax expense Insurance expense Interest expense Notes payable Preferred shares Prepaid expenses Rent expense Retained earnings Salaries expense Salaries payable Supplies expense # Prepare the shareholders' equity section of the balance sheet. $16,000 6,700 FLINT ARCHITECTS LTD.…
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