SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.what is the Retained Earnings after the merger? The following are the condensed balance sheet of GM and SR on January 01, 2018:GMSRTotal AssetsP 3,057,500P 10,250,000P 2,775,000P 3,100,000P 1,250,000LiabilitiesP 800,000Ordinary SharesShare premiumRetained earningsP 1,295,000P 100,000P 862,500P 3,125,000SD Corp also incurred the following unpaid expenses:GMSRР 93,750P 66,250Р 343,750P 125,000P 101,250P 35,000Indirect costFinder's feeAccounting and legal fees for SEC registrationPrinting cost of stock certificatesP 362,500P 93,750

After the merger, the retained earnings of the acquired company become retained earnings of the…

Answered: SD acquired the net assets of both GM…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

what is the Retained Earnings after the merger?

The following are the condensed balance sheet of GM and SR on January 01, 2018:
GM
SR
Total Assets
P 3,057,500
P 10,250,000
P 2,775,000
P 3,100,000
P 1,250,000
Liabilities
P 800,000
Ordinary Shares
Share premium
Retained earnings
P 1,295,000
P 100,000
P 862,500
P 3,125,000
SD Corp also incurred the following unpaid expenses:
GM
SR
Р 93,750
P 66,250
Р 343,750
P 125,000
P 101,250
P 35,000
Indirect cost
Finder's fee
Accounting and legal fees for SEC registration
Printing cost of stock certificates
P 362,500
P 93,750

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