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Required: What are the balances for following accounts on the on the Year 5 consolidated financial statements? (a) (b) (c) (d) (e) (f) (g) Profit Retained earnings, 12/31/Year 5 Equipment Patented technology Goodwill Ordinary shares Liabilities

Required: What are the balances for following accounts on the on the Year 5 consolidated financial statements? (a) (b) (c) (d) (e) (f) (g) Profit Retained earnings, 12/31/Year 5 Equipment Patented technology Goodwill Ordinary shares Liabilities

FINANCIAL ACCOUNTING
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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The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: Revenues Expenses Profit Retained earnings, 1/1/Year 5 Profit (a) (b) (c) Dividends paid Retained earnings, 12/31/Year 5 (f) (g) Equipment (net) Patented technology (net) Receivables and inventory Cash Total assets Ordinary shares Retained earnings Liabilities Total equities and liabilities CAP $ 900,000 660,000 $ 240,000 $ 800,000 240,000 90,000 $950,000 Profit Retained earnings, 12/31/Year 5 Equipment Patented technology Goodwill Ordinary shares Liabilities $ 700,000 900,000 400,000 80,000 $2,080,000 $530,000 950,000 600,000 $2,080,000 SAP $ 300,000 200,000 $100,000 $ 200,000 100,000 0 On December 31, Year 5, after the above figures were prepared, CAP issued $300,000 in debt and 15,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $40 per share. $300,000 $ 600,000 300,000 170,000 110,000 $1,180,000 CAP also paid $30,000 to a broker for arranging the transaction. In addition, CAP paid $40,000 in stock issuance costs. SAP's equipment was actually worth $710,000 but its patented technology was valued at only $270,000. $ 470,000 300,000 410,000 $1,180,000 Required: What are the balances for following accounts on the on the Year 5 consolidated financial statements?
Transcribed Image Text:The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: Revenues Expenses Profit Retained earnings, 1/1/Year 5 Profit (a) (b) (c) Dividends paid Retained earnings, 12/31/Year 5 (f) (g) Equipment (net) Patented technology (net) Receivables and inventory Cash Total assets Ordinary shares Retained earnings Liabilities Total equities and liabilities CAP $ 900,000 660,000 $ 240,000 $ 800,000 240,000 90,000 $950,000 Profit Retained earnings, 12/31/Year 5 Equipment Patented technology Goodwill Ordinary shares Liabilities $ 700,000 900,000 400,000 80,000 $2,080,000 $530,000 950,000 600,000 $2,080,000 SAP $ 300,000 200,000 $100,000 $ 200,000 100,000 0 On December 31, Year 5, after the above figures were prepared, CAP issued $300,000 in debt and 15,000 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $40 per share. $300,000 $ 600,000 300,000 170,000 110,000 $1,180,000 CAP also paid $30,000 to a broker for arranging the transaction. In addition, CAP paid $40,000 in stock issuance costs. SAP's equipment was actually worth $710,000 but its patented technology was valued at only $270,000. $ 470,000 300,000 410,000 $1,180,000 Required: What are the balances for following accounts on the on the Year 5 consolidated financial statements?
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