The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value $ 588,500 $ 549,000 780,000 1,045,500 1,755,000 2,056,500 T 0 840,000 (2,000,000) (500,000) (378,000) (448,000) 304,000 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses (101,500) (101,500) Arturo Company pays $4,180,000 cash and issues 22,700 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 $32,200 and Arturo pays $45,400 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.)

The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value $ 588,500 $ 549,000 780,000 1,045,500 1,755,000 2,056,500 T 0 840,000 (2,000,000) (500,000) (378,000) (448,000) 304,000 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses (101,500) (101,500) Arturo Company pays $4,180,000 cash and issues 22,700 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 $32,200 and Arturo pays $45,400 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.)

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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