Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Date Account Post Journal Entries Here Debit Credit

Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Date Account Post Journal Entries Here Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please help me

Information: 2/15/23 Alpha company purchased all the outstanding shares Omega company for $200,000 in cash and by issuing 20,000 shares of $1 par common stock with a fair value of $15 per share on the acquisition date. In addition, Alpha agreed to pay the former owners of Omega $100,000 if certain performance goals were met over the next five years. Alpha estimates the fair value of this contingency to be $45,000. To facilitate the merger, Alpha paid $30,000 to various professional service organizations. Additional fair value information is provided below. Date Omega Company information as of 2/16/23 Fair Value Receivables Inventory Copyrights Patented technology Total Assets Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liab & Equity Account Carrying Amount 90,000 82,000 130,000 900,000 1,202,000 120,000 650,000 100,000 332,000 1,202,000 Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Post Journal Entries Here 90,000 85,000 200,000 700,000 Debit 120,000 625,000 Credit
Transcribed Image Text:Information: 2/15/23 Alpha company purchased all the outstanding shares Omega company for $200,000 in cash and by issuing 20,000 shares of $1 par common stock with a fair value of $15 per share on the acquisition date. In addition, Alpha agreed to pay the former owners of Omega $100,000 if certain performance goals were met over the next five years. Alpha estimates the fair value of this contingency to be $45,000. To facilitate the merger, Alpha paid $30,000 to various professional service organizations. Additional fair value information is provided below. Date Omega Company information as of 2/16/23 Fair Value Receivables Inventory Copyrights Patented technology Total Assets Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liab & Equity Account Carrying Amount 90,000 82,000 130,000 900,000 1,202,000 120,000 650,000 100,000 332,000 1,202,000 Required: 1. Prepare the journal entries associated with this acquisition if the acquisition is a statutory merger. 2. Prepare the journal entries asscoiated with this acquisition if Omega maintains separate incorporation. Post Journal Entries Here 90,000 85,000 200,000 700,000 Debit 120,000 625,000 Credit
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS