The following book and fair values were available for Westmont Company as of March Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses View transaction list 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. Journal entry worksheet Book Value Fair Value $630,000 $ 600,000 750,000 990,000 1,700,000 2,000,000 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.) 2 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 3 800,000 (80,000) Record the acquisition of Westmont Company.

The following book and fair values were available for Westmont Company as of March Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses View transaction list 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. Journal entry worksheet Book Value Fair Value $630,000 $ 600,000 750,000 990,000 1,700,000 2,000,000 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.) 2 (80,000) (2,000,000) (500,000) (360,000) (420,000) 280,000 3 800,000 (80,000) Record the acquisition of Westmont Company.

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...

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Question

The following book and fair values were available for Westmont Company as of March
Inventory
Land
Buildings
Customer relationships
Accounts payable
Common stock
Additional paid-in capital
Retained earnings, 1/1
Revenues
Expenses
View transaction list
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.
Journal entry worksheet
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.)
2
Book Value
Fair Value
$630,000 $ 600,000
990,000
2,000,000
800,000
(80,000)
3
Transaction
750,000
1,700,000
Note: Enter debits before credits.
0
(80,000)
(2,000,000)
(500,000)
(360,000)
(420,000)
280,000
Record the acquisition of Westmont Company.
General Journal
Debit
Credit

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