Required: Prepare Corp. on the journal January 1, 2016. entries on the books of Robin Corporation to record the acquisition Hope
Required: Prepare Corp. on the journal January 1, 2016. entries on the books of Robin Corporation to record the acquisition Hope
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Current assets
Plant assets
PROBLEM: Balance sheet information for Hope Corp at Jan 1, 2016, is summarized as follows:
$ 920,000
$ 1,200,000
1,800,000
800,000
720,000
1200
solev Hood $2,720,000
$ 2,720,000
Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by
$200,000. On January 2, 2016, Robin Corporation issues 80,000 shares of its $10 par value
common stock for all of Hope's net assets and Hope is dissolved. Market quotations for the two
stocks on this date are:
Robin common:
Hope common:
Liabilities
Capital stock $10 par
Retained earnings
$28
$19
Robin pays the following fees and costs in connection with the combination:
Finder's fee
$10,000
Costs of registering and issuing stock 5,000
160 a
Legal and accounting fees
29VB-
6,000
20
Required:
Prepare the journal entries on the books of Robin Corporation to record the acquisition Hope
Corp. on January 1, 2016.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd5b3e5f1-82e4-4163-8711-8eedc4e21f83%2Fddbf4742-d713-46e2-9d58-49f4c8e7fefb%2F2zs1bnm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current assets
Plant assets
PROBLEM: Balance sheet information for Hope Corp at Jan 1, 2016, is summarized as follows:
$ 920,000
$ 1,200,000
1,800,000
800,000
720,000
1200
solev Hood $2,720,000
$ 2,720,000
Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by
$200,000. On January 2, 2016, Robin Corporation issues 80,000 shares of its $10 par value
common stock for all of Hope's net assets and Hope is dissolved. Market quotations for the two
stocks on this date are:
Robin common:
Hope common:
Liabilities
Capital stock $10 par
Retained earnings
$28
$19
Robin pays the following fees and costs in connection with the combination:
Finder's fee
$10,000
Costs of registering and issuing stock 5,000
160 a
Legal and accounting fees
29VB-
6,000
20
Required:
Prepare the journal entries on the books of Robin Corporation to record the acquisition Hope
Corp. on January 1, 2016.
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