The following book and fair values were available for Westmont Company as of March 1. Fair Value $ 401,250 1,019,250 2,346,750 873,750 (114,500) Book Value Inventory 24 439,750 776, 250 2,025, 000 Land Buildings Customer relationships Accounts payable Common stock (114,500) (2,000,000) (500, 000) (445,000) (506,500) 325,000 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo Company pays $4,170,000 cash and issues 24,000 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 $34,500 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.) View transaction list Journal entry worksheet < 1 > 2 3 Record the acquisition of Westmont Company.

The following book and fair values were available for Westmont Company as of March 1. Fair Value $ 401,250 1,019,250 2,346,750 873,750 (114,500) Book Value Inventory 24 439,750 776, 250 2,025, 000 Land Buildings Customer relationships Accounts payable Common stock (114,500) (2,000,000) (500, 000) (445,000) (506,500) 325,000 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo Company pays $4,170,000 cash and issues 24,000 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 $34,500 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.) View transaction list Journal entry worksheet < 1 > 2 3 Record the acquisition of Westmont Company.

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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