Sylvester Corporation Balance Sheet December 31, 2015 Current assets: Current liabilities: $ 24,000 56,000 31,000 Accounts payable . Payroll and benefit-related liabilities Notes receivable. $ 45,000 Accounts receivable 12,500 Inventory Other current assets . 18,000 Debt maturing in one year. .. 10,000 Total current assets. $129,000 Total current liabilities $ 67,500 Investments 65,000 Fixed assets: Other liabilities: $ 32,000 245,000 Longterm debt.. Payroll and benefit-related liabilities Land. $248,000 Building. 156,000 Equipment 387,000 Total other liabilities.. Stockholders' equity: Common stock.. Paid-in capital in excess of Retained earnings Total fixed assets 664,000 404,000 Intangibles: Goodwill $ 45,000 23,000 10,000 $100,000 Patents.. par 250,000 Trade names 114,500 Total intangibles Total equity Total liabilities and equity 78,000 464,500 Total assets $936,000 $936,000 Assets Liabilities $ 24,000 56,000 30,000 15,000 63,000 Accounts payable . Payroll and benefit-related liabilities current. $ 45,000 12,500 Notes receivable Accounts receivable Inventory Other current assets Debt maturing in one year. . 10,000 Investments Long-term debt. Payroll and benefit-related liabilities long-term... Land. 55,000 275,000 426,000 248,000 Building Equipment Goodwill . 156,000 20,000 15,000 Patents. Trade names

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Tweeden Corporation is contemplating the acquisition of the net assets of Sylvester Corporation in anticipation of expanding
its operations. The balance sheet of Sylvester Corporation on December 31, 2015, is as attached:

n appraiser for Tweeden determined the fair values of Sylvester’s assets and liabilities to be as shown as in attachment 2

The agreed-upon purchase price is $580,000 in cash. Acquisition costs paid in cash total $20,000.
Using the above information, do value analysis and prepare the entry on the books of Tweeden Corporation to acquire the net assets of Sylvester Corporation on December 31, 2015.

Sylvester Corporation
Balance Sheet
December 31, 2015
Current assets:
Current liabilities:
$ 24,000
56,000
31,000
Accounts payable .
Payroll and benefit-related liabilities
Notes receivable.
$ 45,000
Accounts receivable
12,500
Inventory
Other current assets .
18,000
Debt maturing in one year. ..
10,000
Total current assets.
$129,000
Total current liabilities
$ 67,500
Investments
65,000
Fixed assets:
Other liabilities:
$ 32,000
245,000
Longterm debt..
Payroll and benefit-related liabilities
Land.
$248,000
Building.
156,000
Equipment
387,000
Total other liabilities..
Stockholders' equity:
Common stock..
Paid-in capital in excess of
Retained earnings
Total fixed assets
664,000
404,000
Intangibles:
Goodwill
$ 45,000
23,000
10,000
$100,000
Patents..
par
250,000
Trade names
114,500
Total intangibles
Total equity
Total liabilities and equity
78,000
464,500
Total assets
$936,000
$936,000

Assets
Liabilities
$ 24,000
56,000
30,000
15,000
63,000
Accounts payable .
Payroll and benefit-related liabilities current.
$ 45,000
12,500
Notes receivable
Accounts receivable
Inventory
Other current assets
Debt maturing in one year. .
10,000
Investments
Long-term debt.
Payroll and benefit-related liabilities long-term...
Land.
55,000
275,000
426,000
248,000
Building
Equipment
Goodwill .
156,000
20,000
15,000
Patents.
Trade names

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions