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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...
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