Homework Help is Here – Start Your Trial Now!
Business
Accounting
The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Revenues Expenses Net income Retained earnings. 1/1 Net income Dividends Retained earning, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net). Total assets. Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities & stockholders' equity Campbell Newton: $ 700 $2,600 1, 880 400 $ 720 $ 300 $ 500 300 0 $2,400 720 (270) $2,850 $ $ 240 $ 1, 200 2,700 2,100 $6,240 800 230 360 650 1,300. $2,540 $1,500 $ 1,080 810 2,850 $6,240 720 400 620 800 $2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.

The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Revenues Expenses Net income Retained earnings. 1/1 Net income Dividends Retained earning, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net). Total assets. Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities & stockholders' equity Campbell Newton: $ 700 $2,600 1, 880 400 $ 720 $ 300 $ 500 300 0 $2,400 720 (270) $2,850 $ $ 240 $ 1, 200 2,700 2,100 $6,240 800 230 360 650 1,300. $2,540 $1,500 $ 1,080 810 2,850 $6,240 720 400 620 800 $2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Rey

The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Revenues Expenses Net income Retained earnings. 1/1 Net income Dividends Retained earning, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net) Total assets. Liabilities Common stock Additional paid-in capital Retained earnings: Total liabilities & stockholders equity Newton Campbell $2,600 $ 700 1,880 400 $ 720 300 $2,400 720 (270) $2,850 $ 240 1, 200 2,700 2,100 $6, 240 $ $ 500 300 0 $ 800 $ 230 360 658 1, 3001 $2,540 $1,500 $ 1,080 810 2,850 $6,240 720 400 620 800 $2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.
Transcribed Image Text:The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands): Revenues Expenses Net income Retained earnings. 1/1 Net income Dividends Retained earning, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net) Total assets. Liabilities Common stock Additional paid-in capital Retained earnings: Total liabilities & stockholders equity Newton Campbell $2,600 $ 700 1,880 400 $ 720 300 $2,400 720 (270) $2,850 $ 240 1, 200 2,700 2,100 $6, 240 $ $ 500 300 0 $ 800 $ 230 360 658 1, 3001 $2,540 $1,500 $ 1,080 810 2,850 $6,240 720 400 620 800 $2,540 On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.
In connection with the business combination, Campbell paid $25 to a broker for arranging the transaction and $30 in stock issuance costs. At the time of the transaction, Newton's equipment was actually worth $1,450 but its buildings were only valued at $590. Compute the consolidated common stock account at December 31, 2021. Multiple Choice $1,480 $1.080 $1.830 $1.430. 3
Transcribed Image Text:In connection with the business combination, Campbell paid $25 to a broker for arranging the transaction and $30 in stock issuance costs. At the time of the transaction, Newton's equipment was actually worth $1,450 but its buildings were only valued at $590. Compute the consolidated common stock account at December 31, 2021. Multiple Choice $1,480 $1.080 $1.830 $1.430. 3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Consolidations
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS