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The separate balance sheets of Painter Corporation and Sawyer Company following their business combination, in which Painter acquired all of Sawyer's outstanding common stock, were as follows: PAINTER CORPORATION AND SAWYER COMPANY Separate Balance Sheets (following business combination) May 31, 2005 Painter Corporation Sawyer Company Assets Inventories $ 60,000 Other current assets Investment in Sawyer Company common stock Plant assets (net) Goodwill (net) 140,000 $ 30,000 110,000 250,000 220,000 160,000 10,000 Total assets $680,000 $300,000 Liabilities and Stockholders' Equity Current liabilities $100,000 $ 70,000 Bonds payable Common stock, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 104,000 30,000 200,000 80,000 116,000 70,000 160,000 50,000 $680,000 $300,000 On May 31, 2005, the current fair values of Sawyer's inventories and plant assets (net) were $40,000 and $180,000, respectively; the current fair values of its other assets and its liabilities were equal to their carrying amounts. Prepare a consolidated balance sheet for Painter Corporation and its subsidiary on May 31, 2005.

The separate balance sheets of Painter Corporation and Sawyer Company following their business combination, in which Painter acquired all of Sawyer's outstanding common stock, were as follows: PAINTER CORPORATION AND SAWYER COMPANY Separate Balance Sheets (following business combination) May 31, 2005 Painter Corporation Sawyer Company Assets Inventories $ 60,000 Other current assets Investment in Sawyer Company common stock Plant assets (net) Goodwill (net) 140,000 $ 30,000 110,000 250,000 220,000 160,000 10,000 Total assets $680,000 $300,000 Liabilities and Stockholders' Equity Current liabilities $100,000 $ 70,000 Bonds payable Common stock, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 104,000 30,000 200,000 80,000 116,000 70,000 160,000 50,000 $680,000 $300,000 On May 31, 2005, the current fair values of Sawyer's inventories and plant assets (net) were $40,000 and $180,000, respectively; the current fair values of its other assets and its liabilities were equal to their carrying amounts. Prepare a consolidated balance sheet for Painter Corporation and its subsidiary on May 31, 2005.

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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The separate balance sheets of Painter Corporation and Sawyer Company following their business combination, in which Painter acquired all of Sawyer's outstanding common stock, were as follows: PAINTER CORPORATION AND SAWYER COMPANY Separate Balance Sheets (following business combination) May 31, 2005 Painter Corporation Sawyer Company Assets Inventories $ 60,000 Other current assets Investment in Sawyer Company common stock Plant assets (net) Goodwill (net) 140,000 $ 30,000 110,000 250,000 220,000 160,000 10,000 Total assets $680,000 $300,000 Liabilities and Stockholders' Equity Current liabilities $100,000 $ 70,000 Bonds payable Common stock, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 104,000 30,000 200,000 80,000 116,000 70,000 160,000 50,000 $680,000 $300,000 On May 31, 2005, the current fair values of Sawyer's inventories and plant assets (net) were $40,000 and $180,000, respectively; the current fair values of its other assets and its liabilities were equal to their carrying amounts. Prepare a consolidated balance sheet for Painter Corporation and its subsidiary on May 31, 2005.
Transcribed Image Text:The separate balance sheets of Painter Corporation and Sawyer Company following their business combination, in which Painter acquired all of Sawyer's outstanding common stock, were as follows: PAINTER CORPORATION AND SAWYER COMPANY Separate Balance Sheets (following business combination) May 31, 2005 Painter Corporation Sawyer Company Assets Inventories $ 60,000 Other current assets Investment in Sawyer Company common stock Plant assets (net) Goodwill (net) 140,000 $ 30,000 110,000 250,000 220,000 160,000 10,000 Total assets $680,000 $300,000 Liabilities and Stockholders' Equity Current liabilities $100,000 $ 70,000 Bonds payable Common stock, $1 par Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 104,000 30,000 200,000 80,000 116,000 70,000 160,000 50,000 $680,000 $300,000 On May 31, 2005, the current fair values of Sawyer's inventories and plant assets (net) were $40,000 and $180,000, respectively; the current fair values of its other assets and its liabilities were equal to their carrying amounts. Prepare a consolidated balance sheet for Painter Corporation and its subsidiary on May 31, 2005.
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