The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 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. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000

The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 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. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000

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...

See similar textbooks

Similar questions

ABC Company provided the following information for the year ended December 31, 2020: Share Capital P1,000,000 Loss from inventory write-down 150,000 Share premium 1,500,000 Retained earnings, January 1 550,000 Dividends paid 450,000 Loss on sale of trading securities 50,000 Additional information: During the current year ABCCompany issued additional 20,000 shares, 25 par value, for P1,000,000. On October 1, ABCCompany approved a formal plan to discontinue and sell a business segment. The segment had income of P2,000,000 from January 1 to September 30. On December 31, the carrying amount of the assets of the segment was P4,000,000 and the fair value less cost of disposal was P3,000,000. The income tax rate is 30% Required: Prepare statement of changes in shareholders equity
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 439,750 $ 401,250 Land 776,250 1,019,250 Buildings 2,025,000 2,346,750 Customer relationships 0 873,750 Accounts payable (114,500 ) (114,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (445,000 ) Revenues (506,500 ) Expenses 325,000 Arturo pays cash of $4,403,500 to acquire Westmont. No stock is issued and Arturo pays $50,600 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 required" in the first account field.) Record the acquisition of Westmont Company. Record the legal fees related to the combination.
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.
Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What is the carrying amount of the inventory on December 31, 2020? - What is the amount to be recognized in profit or loss for the distribution of the non- cash dividend?
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…
Mara Company provided the following data at year-end:Authorized share capital 5,000,000Unissued share capital 2,000,000Subscribed share capital 1,000,000Subscription receivable 400,000Share premium 600,000Retained earnings unappropriated 600,000Retained earnings appropriated 300,000Revaluation surplus 200,000Treasury shares, at cost 150,000What total amount should be reported as shareholders’ equity?
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 200,500 $ 167,000 Land 817,500 1,097,250 Buildings 2,175,000 2,506,500 Customer relationships 0 860,250 Accounts payable (87,000 ) (87,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (431,500 ) Revenues (478,500 ) Expenses 304,000 Arturo Company pays $3,650,000 cash and issues 22,500 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 $33,600 and Arturo pays $49,300 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…
Required: Give the journal entries to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under a. memorandum entry method, b.journal entry method The following are the transactions of JEYA Inc. for the month of January 2020. January 5 officially formed the corporation with 5,000,000 authorized share capital at P10 par value. January 6 the incorporators subscribed and paid in full 1,000,000 shares. January 8 issued 500,000 shares to an investors for P15 per share. January 10 received subscription from an investor for 200,000 shares at P20 per share. January 15 issued 5,000 shares for incorporation services rendered by a consultancy firm. The service is worth P100,000. January 20 issued 500,000 shares for P16 per share. January 24 collected the payment for subscription on January 10. January 27 received subscription for 1,000,000 shares at P11 per share receiving 50% advanced payment. January 30 issued 2,000…
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 296,000 $ 242,750 Land 766,500 1,034,250 Buildings 2,150,000 2,453,000 Customer relationships 0 846,750 Accounts payable (106,500 ) (106,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (428,000 ) Revenues (467,000 ) Expenses 289,000 Arturo Company pays $3,400,000 cash and issues 25,400 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 $25,300 and Arturo pays $51,100 for legal fees to complete the transaction. Prepare Arturo’s journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…
Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles…
Flounder Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 47,500 common shares of Yuen Inc. $266,000 $190,000 3,200 preferred shares of Monty Ltd. 121,600 128,000 1,350 common shares of Oakwood Inc. 121,500 120,825 On October 8, 2023, the Yuen shares were sold for $5.60 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $43.80 per share. Flounder pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,050; Patriot $116,750; and Oakwood $137,025. Flounder prepares financial statements every quarter. (a) Your answer is partially correct. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023.…
The following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019. Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000 Share Premium - Ordinary $ 75,000 Retained Earnings $ 420,000 Prepare the required Journal Entries for the following unrelated items! 1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share. 2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split. 3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.