[The following information applies to the questions displayed below. Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Pumpworks Balance Sheet Items Assets Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Current Liabilities Capital Stock Capital in Excess of Par Value Retained Earnings Total Liabilities & Equities Book Value $ 96,000 113,000 113,000 405,000 (140,000) $ 587,000 $ 66,000 324,000 21,000 176,000 $ 587,000 Fair Value Book Value $ 96,000 165,000 Seaworthy Rope Company 144,000 311,000 $716,000 $ 66,000 $ 16,000 26,000 6,000 218,000 (67,000) $199,000 $ 20,000 72,000 6,000 101,000 $199,000 Fair Value $ 16,000 38,000 11,000 127,000 $192,000 $ 20,000 Pumpworks has 10,800 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy has 4,800 shares of $15 par value stock outstanding. The market values of the shares are $210 and $60. respectively.
[The following information applies to the questions displayed below. Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Pumpworks Balance Sheet Items Assets Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Current Liabilities Capital Stock Capital in Excess of Par Value Retained Earnings Total Liabilities & Equities Book Value $ 96,000 113,000 113,000 405,000 (140,000) $ 587,000 $ 66,000 324,000 21,000 176,000 $ 587,000 Fair Value Book Value $ 96,000 165,000 Seaworthy Rope Company 144,000 311,000 $716,000 $ 66,000 $ 16,000 26,000 6,000 218,000 (67,000) $199,000 $ 20,000 72,000 6,000 101,000 $199,000 Fair Value $ 16,000 38,000 11,000 127,000 $192,000 $ 20,000 Pumpworks has 10,800 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy has 4,800 shares of $15 par value stock outstanding. The market values of the shares are $210 and $60. respectively.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter6: Audit Evidence
Section: Chapter Questions
Problem 15CYBK
Related questions
Topic Video
Question
Accounting
![4
A
s
Required information
1. 1,300 shares of common.
2. 2,000 shares of common.
3. 3,100 shares of common.
1 Capital stock
Capital in excess of par value
Retained earnings
2 Capital stock
Capital in excess of par value.
Retained earnings
3 Capital stock
Capital in excess of par value
Retained earnings
$
$
S
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b6ce77-7d1f-42c7-90fc-6e082dc1db1b%2F6492ca5a-2745-463e-bdaa-4acd51332b00%2Fhqe7xukg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4
A
s
Required information
1. 1,300 shares of common.
2. 2,000 shares of common.
3. 3,100 shares of common.
1 Capital stock
Capital in excess of par value
Retained earnings
2 Capital stock
Capital in excess of par value.
Retained earnings
3 Capital stock
Capital in excess of par value
Retained earnings
$
$
S
0
0
![кequirea information
[The following information applies to the questions displayed below.]
Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of
the merger agreement, the companies reported the following data:
Pumpworks
Balance Sheet Items
Assets
Cash & Receivables
Inventory
Land
Plant & Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities & Equities
Current Liabilities
Capital Stock
Capital in Excess of Par Value
Retained Earnings
Total Liabilities & Equities
Book Value
$ 96,000
113,000
113,000
405,000
(140,000)
$ 587,000
$ 66,000
324,000
21,000
176,000
$ 587,000
Fair Value
$ 96,000
165,000
144,000.
311,000
$716,000
$ 66,000
Seaworthy Rope Company
Book Value
$ 16,000
26,000
6,000
218,000
(67,000)
$199,000
$20,000.
72,000
6,000
101,000
$199,000
Fair Value
$ 16,000
38,000
11,000
127,000
$192,000
$ 20,000
Pumpworks has 10,800 shares of its $30 par value shares outstanding on January 1, 20X3, and
Seaworthy has 4,800 shares of $15 par value stock outstanding. The market values of the shares are
$310 and $60, respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b6ce77-7d1f-42c7-90fc-6e082dc1db1b%2F6492ca5a-2745-463e-bdaa-4acd51332b00%2Feh7il9n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:кequirea information
[The following information applies to the questions displayed below.]
Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of
the merger agreement, the companies reported the following data:
Pumpworks
Balance Sheet Items
Assets
Cash & Receivables
Inventory
Land
Plant & Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities & Equities
Current Liabilities
Capital Stock
Capital in Excess of Par Value
Retained Earnings
Total Liabilities & Equities
Book Value
$ 96,000
113,000
113,000
405,000
(140,000)
$ 587,000
$ 66,000
324,000
21,000
176,000
$ 587,000
Fair Value
$ 96,000
165,000
144,000.
311,000
$716,000
$ 66,000
Seaworthy Rope Company
Book Value
$ 16,000
26,000
6,000
218,000
(67,000)
$199,000
$20,000.
72,000
6,000
101,000
$199,000
Fair Value
$ 16,000
38,000
11,000
127,000
$192,000
$ 20,000
Pumpworks has 10,800 shares of its $30 par value shares outstanding on January 1, 20X3, and
Seaworthy has 4,800 shares of $15 par value stock outstanding. The market values of the shares are
$310 and $60, respectively.
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