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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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
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