PROBLEMA II. On January 1, 20X1, Romaly Corporation purchased the net assets of LulorCompany for $1,500,000. On this date, a condensed balance sheet for Lulor showed:Account NameCurrent AssetsLong-Term Investments in SecuritiesLandBuilding (net)Total AssetsCurrent LiabilitiesLong-Term LiabilitiesCommon Stock (no-par)Retained EarningsTotal Liabilities & Stockholders' EquityDATEGENERAL JOURNALLandBuildingTotalACCOUNT NAMERemaining amount assignable to Land and Building:Book Value$Required: Record the entry on Romaly's books for the acquisition of Lulor's net assets. Preparesupporting schedules as necessary.SOLUCIÓN PROBLEMA II500,000200,000100,000700,000$1,500,000P/R$300,000550,000300,000350,000$1,500,000Fair ValueDEBIT$800,000150,000600,000900,000$300,000600,000CREDITFair Value % of Total Fair Value Total Cost Assignable Assigned Value

A business acquisition, by definition, occurs when one company purchases another company. The…

PROBLEMA II. On January 1, 20X1, Romaly Corporation purchased the net assets of Lulor Company for $1,500,000. On this date, a condensed balance sheet for Lulor showed: Account Name Current Assets Long-Term Investments in Securities Land Building (net) Total Assets Current Liabilities Long-Term Liabilities Common Stock (no-par) Retained Earnings Total Liabilities & Stockholders' Equity Book Value $ 500,000 200,000 100,000 700,000 $1,500,000 $300,000 550,000 300,000 350,000 $1,500,000 Fair Value $800,000 150,000 600,000 900,000 $300,000 600,000 Required: Record the entry on Romaly's books for the acquisition of Lulor's net assets. Prepare supporting schedules as necessary.

PROBLEMA II. On January 1, 20X1, Romaly Corporation purchased the net assets of Lulor Company for $1,500,000. On this date, a condensed balance sheet for Lulor showed: Account Name Current Assets Long-Term Investments in Securities Land Building (net) Total Assets Current Liabilities Long-Term Liabilities Common Stock (no-par) Retained Earnings Total Liabilities & Stockholders' Equity Book Value $ 500,000 200,000 100,000 700,000 $1,500,000 $300,000 550,000 300,000 350,000 $1,500,000 Fair Value $800,000 150,000 600,000 900,000 $300,000 600,000 Required: Record the entry on Romaly's books for the acquisition of Lulor's net assets. Prepare supporting schedules as necessary.

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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