Stockholders of Concord Company, Bridgeport Company, and Bramble Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets Concord $3,865,200 $2,042,840 2,020,000 (a) -0- (197,640) $3,865,200 $4,158,050 Bridgeport $7,560,100 $2,186,840 1,805,180 594,040 2,974,040 $7,560,100 $8,910,100 Bramble $947,540 CONCORD COMPANY Balance Sheet $258,760 535,240 Concord Company shares have a fair value of $52. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. 190,100 (36,560) $947,540 $1,305,390 Prepare a balance sheet for the business combination. Assume the following: Concord Company acquires all the assets and assumes all the liabilities of Bridgeport and Bramble Companies by issuing in exchange 140,130 shares of its common stock to Bridgeport Company and 40,110 shares of its common stock to Bramble Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)
Stockholders of Concord Company, Bridgeport Company, and Bramble Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets Concord $3,865,200 $2,042,840 2,020,000 (a) -0- (197,640) $3,865,200 $4,158,050 Bridgeport $7,560,100 $2,186,840 1,805,180 594,040 2,974,040 $7,560,100 $8,910,100 Bramble $947,540 CONCORD COMPANY Balance Sheet $258,760 535,240 Concord Company shares have a fair value of $52. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. 190,100 (36,560) $947,540 $1,305,390 Prepare a balance sheet for the business combination. Assume the following: Concord Company acquires all the assets and assumes all the liabilities of Bridgeport and Bramble Companies by issuing in exchange 140,130 shares of its common stock to Bridgeport Company and 40,110 shares of its common stock to Bramble Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stockholders of Concord Company, Bridgeport Company, and Bramble Company are considering alternative arrangements for a
business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows:
Assets
Liabilities
Common stock, $20 par value
Other contributed capital
Retained earnings (deficit)
Total equities
Fair values of assets.
Concord
(a)
$3,865,200
$2,042,840
2,020,000
-0-
(197,640)
$3,865,200
$4,158,050
Bridgeport
$7,560,100
$2,186,840
1,805,180
594,040
2,974,040
$7,560,100
Bramble
$947,540
$258,760
CONCORD COMPANY
Balance Sheet
535,240
190,100
(36,560)
$947,540
$8,910,100 $1,305,390
Concord Company shares have a fair value of $52. A fair (market) price is not available for shares of the other companies because they
are closely held. Fair values of liabilities equal book values.
Prepare a balance sheet for the business combination. Assume the following: Concord Company acquires all the assets and
assumes all the liabilities of Bridgeport and Bramble Companies by issuing in exchange 140,130 shares of its common stock to
Bridgeport Company and 40,110 shares of its common stock to Bramble Company. (List assets in order of liquidity. Enter negative
account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).)
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