Pedro Corporation acquired 80 percent of Strop Company on January 1, 2020, by issuing 29,000 shares of $1 par common stock. The market value of the Pedro stock on this date was $18 per share. Pedro paid $23,000 to a third party for help in arranging the business combination and $31,000 to register and issue the shares issued in the acquisition. REQUIRED: PEDRO’S ACQUISITION DATE_(COMBINED) JOURNAL ENTRY) WOULD INCLUDE: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NÓ COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.

Pedro Corporation acquired 80 percent of Strop Company on January 1, 2020, by issuing 29,000 shares of $1 par common stock. The market value of the Pedro stock on this date was $18 per share. Pedro paid $23,000 to a third party for help in arranging the business combination and $31,000 to register and issue the shares issued in the acquisition. REQUIRED: PEDRO’S ACQUISITION DATE_(COMBINED) JOURNAL ENTRY) WOULD INCLUDE: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NÓ COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Pedro Corporation acquired 80 percent of Strop Company on January 1, 2020, by issuing 29,000 shares of $1 par common stock.
The market value of the Pedro stock on this date was $18 per share.
Pedro paid $23,000 to a third party for help in arranging the business combination and $31,000 to register and issue the shares
issued in the acquisition.
REQUIRED:
PEDRO'S ACQUISITION DATE_(COMBINED) JOURNAL ENTRY) WOULD INCLUDE:
NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE
1000 INSTEAD OF $1,000.
DEBIT TO ACQUISITION EXPENSE FOR:
DEBIT TO INVESTMENT IN S FOR:

CREDIT TO COMMON STOCK FOR
CREDIT TO ADDITIONAL PAID IN CAPITAL FOR

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Goodwill arising