Pumpworks has 1,100 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy has 5,00 shares of $15 par value stock outstanding. The market values of the shares are $300 and $60, respectively. b. Prepare the stockholders' equity section of the combined company's balance sheet, assuming Pumpworks acquires all of Seaworthy's net assets by issuing 1.1,300 shares of common. 2.2,000 shares of common. 33100 shares of common Required information 1 Capital stock Capital in excess of par value Retained earnings 2 Capital stock Capital in excess of par value Retained earnings 3 Capital stock Capital in excess of par value Retained earnings
Pumpworks has 1,100 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy has 5,00 shares of $15 par value stock outstanding. The market values of the shares are $300 and $60, respectively. b. Prepare the stockholders' equity section of the combined company's balance sheet, assuming Pumpworks acquires all of Seaworthy's net assets by issuing 1.1,300 shares of common. 2.2,000 shares of common. 33100 shares of common Required information 1 Capital stock Capital in excess of par value Retained earnings 2 Capital stock Capital in excess of par value Retained earnings 3 Capital stock Capital in excess of par value Retained earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger
agreement, the companies reported the following data:
Balance Sheet Items
Assets
Cash & Receivables
Inventory
Land
Plant & Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities & Equities
Current Liabilities
Capital Stock
Capital in Excess of Par Value
Retained Earnings
Total Liabilities & Equities
Pumpworks
Book Value
$ 94,000
112,000
112,000
419,000
(147,000)
$ 590,000
$ 69,000
333,000
25,000
163,000
$ 590,000
Fair Value
$ 94,000
155,000
154,000
pict 303,000
ure
$706,000
$ 69,000
Seaworthy Rope Company
Book Value
$ 17,000
27,000
7,000
208,000
(62,000)
$197,000
$ 22,000
76,500
10,000
88,500
$197,000
Fair Value
$ 17,000
39,000
12,000
pict 133,000
ure
$201,000
$ 22,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76060508-cf98-4dff-96a8-1fb18ec3a9be%2Fd87387ab-a97f-4524-9e1a-4a2d3b8ba1a1%2Fzloxa5_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger
agreement, the companies reported the following data:
Balance Sheet Items
Assets
Cash & Receivables
Inventory
Land
Plant & Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities & Equities
Current Liabilities
Capital Stock
Capital in Excess of Par Value
Retained Earnings
Total Liabilities & Equities
Pumpworks
Book Value
$ 94,000
112,000
112,000
419,000
(147,000)
$ 590,000
$ 69,000
333,000
25,000
163,000
$ 590,000
Fair Value
$ 94,000
155,000
154,000
pict 303,000
ure
$706,000
$ 69,000
Seaworthy Rope Company
Book Value
$ 17,000
27,000
7,000
208,000
(62,000)
$197,000
$ 22,000
76,500
10,000
88,500
$197,000
Fair Value
$ 17,000
39,000
12,000
pict 133,000
ure
$201,000
$ 22,000
Transcribed Image Text:Pumpworks has 1,100 shares of its $30 per value shares outstanding on January 1, 2003, and Seaworthy has 5100
shares of $15 par value stock outstanding. The market values of the shares are $300 and $60, respectively.
b. Prepare the stockholders' equity section of the combined company's balance sheet, assuming Pumpworks acquires all of
Seaworthy's net assets by issuing
11300 shares of common.
2.2,000 shares of common.
3.300 shares of common.
!
Required information
1 Capital stock
Capital in excess of par value
Retained earnings
2 Capital stock
Capital in excess of par value
Retained earnings
3 Capital stock
Capital in excess of par value
Retained earnings
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education