Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $85,250 and a fair value of $102,750 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow: Peace Computer Corporation Symbol Software Company Book Value Fair Value Book Value Fair Value Cash $ 216,000 $ 216,000 $ 62,000 $ 62,000 Other Assets 406,000 406,000 137,000 137,000 Total Debits $ 622,000 $ 199,000 Current Liabilities $ 82,000 82,000 $ 62,000 62,000 Common Stock 290,000 62,000 Retained Earnings 250,000 75,000 Total Credits $ 622,000 $ 199,000 Required: Prepare a consolidated balance sheet immediately following the acquisition.
Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $85,250 and a fair value of $102,750 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow: Peace Computer Corporation Symbol Software Company Book Value Fair Value Book Value Fair Value Cash $ 216,000 $ 216,000 $ 62,000 $ 62,000 Other Assets 406,000 406,000 137,000 137,000 Total Debits $ 622,000 $ 199,000 Current Liabilities $ 82,000 82,000 $ 62,000 62,000 Common Stock 290,000 62,000 Retained Earnings 250,000 75,000 Total Credits $ 622,000 $ 199,000 Required: Prepare a consolidated balance sheet immediately following the acquisition.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $85,250 and a fair value of $102,750 in exchange for the shares. Summarized
| Peace Computer Corporation | Symbol Software Company | |||
|---|---|---|---|---|
| Book Value | Fair Value | Book Value | Fair Value | |
| Cash | $ 216,000 | $ 216,000 | $ 62,000 | $ 62,000 |
| Other Assets | 406,000 | 406,000 | 137,000 | 137,000 |
| Total Debits | $ 622,000 | $ 199,000 | ||
| Current Liabilities | $ 82,000 | 82,000 | $ 62,000 | 62,000 |
| Common Stock | 290,000 | 62,000 | ||
| 250,000 | 75,000 | |||
| Total Credits | $ 622,000 | $ 199,000 |
Required:
Prepare a consolidated balance sheet immediately following the acquisition.
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