The following book and fair values were available for Beech Company as of June 1:Fair ValueBook Value$367,500$ 318,000998,250756,0002,040,000 2,346,000842,250(88,000)InventoryLandBuildingsTrademarksAccounts payableCommon stockItemsAdditional paid-in capitalRetained earnings, 1/1RevenuesExpensesAlder Company pays $3,640,000 cash and issues 21,500 shares of its $2 par value common stock (fair value of $50 per share) for allof Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $31,700,and Alder pays $46,100 for legal fees to complete the transaction.View transaction listRequired: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.Journal entry worksheet12Transaction1(88,000)(2,000,000)(500,000)(412,000)(446,000)282,5003Record the acquisition of Beech Company.Note: Enter debits before credits.0000General JournalDebitCredit

Journal entries are made to record the transactions as the first process in the books of accounts…

Answered: The following book and fair values were…

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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Marin Company provides you with the following condensed balance sheet information: Assets Current assets $ 41,700 Equity investments 60,000 Equipment (net) 227,600 Intangibles 55,500 Total assets $384,800 Liabilities and Stockholders’ Equity Current and long-term liabilities $96,400 Stockholders’ equity Common stock ($5 par) $ 19,700 Paid-in capital in excess of par 107,300 Retained earnings 161,400 288,400 Total liabilities and stockholders’ equity $384,800 For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.)(a) Marin declares and pays a $0.55 per share cash dividend. (1) Total assets $…
Brooks Company purchases debt investments as trading securities at a cost of $56,000 on December 27. This is its first and only purchase of such securities. At December 31, these securities had a fair value of $63,000. Exercise 15-3 (Algo) Financial statement impact of trading securities LO P1 Brooks sells a portion of its trading securities (costing $28,000) for $29,750 cash. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including + or −) for each transaction. 1. 1. 2. 3. 3. Debt Investments - Trading Cash Assets (+) increase (-) decrease (+) increase 56,000 56,000 = = = = = X Answer is not complete. Liabilities + + + + + Retained earnings Equity X (+) increase × 1,750 X
Cash GRS Ltd. Statement of Financial Position As at December 31, 2023 Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $673,400 543,900 2,408,700 2,050,000 2,456,000 $8,132,000 $259,000 2,524,000 5,349,000 $8,132,000 From GRS's income statement, cost of goods sold for 2023 was $1,825,000. Accounts payable on December 31, 2022 was $151,000. Calculate the current ratio, acid-test ratio, and days payables outstanding. (Round current ratio and acid-test ratio to 2 decimal places, e.g. 7.25. Round days payable outstanding to 0 decimal places, e.g. 53. Use 365 days for calculation.)
Poison Corporation holds 70 percent of Snake Company's voting common shares but none of its preferred shares. Summary balance sheets for the companies on December 31, 20X1, are as follows: Assets Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Investment in Snake Company Total Assets Liabilities and Owners' Equity Accounts Payable Wages Payable Preferred Stock Common Stock ($10 par value) Retained Earnings Total Liabilities and Owners' Equity Poison Corporation $ 19,000 38,000 120,000 280,000 (131,000) 124,600 $ 450,600 Consolidated earnings per share $ 83,600 42,000 100,000 120,000 105,000 $ 450,600 Required: Compute 20X1 consolidated EPS. Ignore any tax consequences. Note: Round your answer to 2 decimal places. Snake Company $ 27,000 48,000 72,000 210,000 (64,000) $ 293,000 $ 62,000 Neither of the preferred issues is convertible. Poison's preferred pays a 9 percent annual dividend and Snake's preferred pays a 10 percent dividend. Snake…
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 644,750 $ 609,000 Land 779,250 1,086,750 Buildings 1,770,000 2,138,250 Customer relationships 0 842,250 Accounts payable (102,000 ) (102,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (424,500 ) Revenues (457,000 ) Expenses 289,500 Arturo Company pays $4,130,000 cash and issues 28,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $32,400 and Arturo pays $49,800 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…
Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies' balance sheets as of December 31, 20X4, were as follows: Assets Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Investment in Short Retail Stores. Total Assets Liabilities and Equity Accounts Payable Bonds Payable Preferred Stock ($10 par value) Common Stock: $10 par value $5 par value Retained Earnings Total Liabilities and Equity Punch Manufacturing Corporation $ 55,000 102,000 250,000 110,000 510,000 (225,000) 128,000 $ 930,000 $ 100,000 280,000 200,000 Basic earnings per share Diluted earnings per share 150,000 200,000 $ 930,000 Short Retail Stores $ 35,000 82,000 130,000 80,000 320,000 (145,000) $ 502,000 $ 62,000 200,000 80,000 100,000 60,000 $ 502,000 Short Retail's 8 percent preferred stock is convertible into 14,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short…
Nexis Corp. issues 1,180 shares of $9 par value common stock at $17 per share. When the transaction is recorded, credits are made to a. Common Stock, $9,440 and Paid-In Capital in Excess of Stated Value, $10,620. Ob. Common Stock, $20,060. Oc. Common Stock, $9,440 and Retained Earnings, $10,620. Od. Common Stock, $10,620, and Paid-In Capital in Excess of Par-Common Stock, $9,440.
The accounts below appear in the December 31, 200B trial balance of M Company: Authorized common stock P2,500,000 Unissued common stock 1,000,000 Subscribed common stock 500,000 Subscription receivable 200,000 Additional paid-in capital 250,000 Retained earnings unappropriated 300,000 Retained earnings appropriated 150,000 Revaluation increment in property 100,000 Treasury stock, at cost 50,000 In its December 31, 200B balance sheet, M should report total stockholders' equity at a. P2,550,000 b. P2,750,000 c. P2,450,000 d. P2,400,000
The following book and fair values were available for Westmont Company as of March 1. Book value Fair value Inventory $ 630,000 $ 600,000 Land 750,000 990,000 Buildings 1,700,000 2,000,000 Customer relationships –0– 800,000 Accounts payable (80,000) (80,000) Common stock (2,000,000) Additional paid-in capital (500,000) Retained earnings, 1/1 (360,000) Revenues (420,000) Expenses 280,000 Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Required Prepare Arturo’s journal entries to record its acquisition of Westmont.
On January 2, 20Y4, Whitworth Company acquired 37% of the outstanding stock of Aloof Company for $320,000. For the year ended December 31, 20Y4, Aloof Company earned income of $83,000 and paid dividends of $26,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $338,090. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Income - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Dividends - Select - - Select - - Select - - Select - Jan. 31, 20Y5 - Sale - Select - - Select - - Select - - Select - - Select - - Select -
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 245,500 $ 203,750 Land 820,500 1,072,500 Buildings 2,115,000 2,457,750 Customer relationships 0 833,250 Accounts payable (96,000 ) (96,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (413,000 ) Revenues (494,000 ) Expenses 322,000 Arturo Company pays $4,160,000 cash and issues 22,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $31,900 and Arturo pays $51,200 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont.
On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale

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