The following book and fair values were available for Beech Company as of June 1: Book Value $ 300,000 816,000 2,050,000 Fair Value $248,250 1,085,250 2,375,500 822,750 (100,000) Items Inventory. Land Buildings Trademarks Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses 0 (100,000) (2,000,000) (500,000) (395,000) (454,500) 283,500 0 0 0 0 0 Alder Company pays $3,370,000 cash and issues 24,300 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $25,800, and Alder pays $47,400 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
The following book and fair values were available for Beech Company as of June 1: Book Value $ 300,000 816,000 2,050,000 Fair Value $248,250 1,085,250 2,375,500 822,750 (100,000) Items Inventory. Land Buildings Trademarks Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses 0 (100,000) (2,000,000) (500,000) (395,000) (454,500) 283,500 0 0 0 0 0 Alder Company pays $3,370,000 cash and issues 24,300 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $25,800, and Alder pays $47,400 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A-3
Transcribed Image Text:The following book and fair values were available for Beech Company as of June 1:
Book Value
$ 300,000
816,000
2,050,000
Fair Value
$ 248, 250
1,085,250
2,375,500
Inventory
Land
Buildings
Trademarks
Items
Accounts payable
Common stock
Additional paid-in capital
Retained earnings, 1/1
Revenues
Expenses
View transaction list
Journal entry worksheet
1
Alder Company pays $3,370,000 cash and issues 24,300 shares of its $2 par value common stock (fair value of $50 per share) for all
of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $25,800,
and Alder pays $47,400 for legal fees to complete the transaction.
Required:
Prepare Alder's journal entries to record its acquisition of Beech.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
2
0
(100,000)
(2,000,000)
(500,000)
(395,000)
(454,500)
283,500
3
822,750
(100,000)
Record the acquisition of Reach Company
0
0
0
0
0
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