Required informationSkip to question [The following information applies to the questions displayed below.] On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company’s outstanding voting shares. Webstat’s precombination book and fair values are shown below along with book values for TruData’s accounts. TruDataWebstatWebstat Book ValuesBook ValuesFair ValuesRevenues (1/1 to 7/1)$(285,000)$(132,000) Expenses (1/1 to 7/1) 190,000 74,000 Retained earnings, 1/1 (126,000) (162,000) Cash and receivables 148,000 56,000 $56,000 Inventory 178,000 164,000 178,000 Patented technology (net) 230,000 192,000 200,000 Land 414,000 206,000 246,000 Buildings and equipment (net) 94,000 78,000 78,000 Liabilities (520,000) (376,000) (346,000)Common stock (312,000) (60,000) Additional paid-in capital (11,000) (40,000) On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock? Multiple Choice $60,000. $312,000. $369,000. $372,000.

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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 following information applies to the questions displayed below.]

On July 1, TruData Company issues 11,400 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company’s outstanding voting shares. Webstat’s precombination book and fair values are shown below along with book values for TruData’s accounts.

	TruData	Webstat	Webstat
	Book Values	Book Values	Fair Values
Revenues (1/1 to 7/1)	$	(285,000	)	$	(132,000	)
Expenses (1/1 to 7/1)		190,000			74,000
Retained earnings, 1/1		(126,000	)		(162,000	)
Cash and receivables		148,000			56,000		$	56,000
Inventory		178,000			164,000			178,000
Patented technology (net)		230,000			192,000			200,000
Land		414,000			206,000			246,000
Buildings and equipment (net)		94,000			78,000			78,000
Liabilities		(520,000	)		(376,000	)		(346,000	)
Common stock		(312,000	)		(60,000	)
Additional paid-in capital		(11,000	)		(40,000	)

On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?

Multiple Choice

$60,000.
$312,000.
$369,000.
$372,000.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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