The following are the condensed balance sheet of GM and SR on January 01, 2018: GM P 10,250,000 P 2,775,000 P 3,100,000 P 1,250,000 P 3,125,000 SR Total Assets |Liabilities Ordinary Shares Share premium |Retained earnings P 3,057,500 P 800,000 P 1,295,000 P 100,000 P 862,500 SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD Corp also incurred the following unpaid expenses: GM P 93,750 P 66,250 Accounting and legal fees for SEC registration| P 343,750 P 125,000 SR P 101,250 P 35,000 P 362,500 P 93,750 Indirect cost Finder's fee |Printing cost of stock certificates SD's retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

The following are the condensed balance sheet of GM and SR on January 01, 2018: GM P 10,250,000 P 2,775,000 P 3,100,000 P 1,250,000 P 3,125,000 SR Total Assets |Liabilities Ordinary Shares Share premium |Retained earnings P 3,057,500 P 800,000 P 1,295,000 P 100,000 P 862,500 SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD Corp also incurred the following unpaid expenses: GM P 93,750 P 66,250 Accounting and legal fees for SEC registration| P 343,750 P 125,000 SR P 101,250 P 35,000 P 362,500 P 93,750 Indirect cost Finder's fee |Printing cost of stock certificates SD's retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

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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