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The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value 644,750 $ 600,000 779,250 1,086,750 1,770,000 2,138,250 0842,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses (102,000) (102,000) (2,000,000) (500,000) (424,500) (457,000) 209,500

The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value 644,750 $ 600,000 779,250 1,086,750 1,770,000 2,138,250 0842,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses (102,000) (102,000) (2,000,000) (500,000) (424,500) (457,000) 209,500

FINANCIAL ACCOUNTING
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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1 book Prv Suferences The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value $ 664,750 $ 609,000 1,086,750 2,138,250 779,250 1,770,000 M 842,250 (102,000) Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues (102,000) (2,000,000) (500,000) (424,500) (457,000) 289,500 Arturo Company pays $4330,000 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. Of no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transcribed Image Text:1 book Prv Suferences The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value $ 664,750 $ 609,000 1,086,750 2,138,250 779,250 1,770,000 M 842,250 (102,000) Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues (102,000) (2,000,000) (500,000) (424,500) (457,000) 289,500 Arturo Company pays $4330,000 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. Of no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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