Homework Help is Here – Start Your Trial Now!
Business
Accounting
The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):

The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands):

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Dog

The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands): Pal Sip Capital stock, $2 par $20,000 $5,500 Other paid in capital 600 300 Retained earnings 6,400 3,900 Stockholders' equity $27,000 $9,700 On January 2, Pal issued 559,000 of its shares with a market value of $18 per share for all of Sip's shares, and Sip was dissolved. On the same day, Pal paid $18,000 to register and issue the shares and $38,000 for other direct costs of combination. Prepare the journal entry for the acquisition of Sip Corporation (excluding the additional costs paid).
Transcribed Image Text:The stockholders' equities of Pal Corporation and Sip Corporation at January 1 were as follows (in thousands): Pal Sip Capital stock, $2 par $20,000 $5,500 Other paid in capital 600 300 Retained earnings 6,400 3,900 Stockholders' equity $27,000 $9,700 On January 2, Pal issued 559,000 of its shares with a market value of $18 per share for all of Sip's shares, and Sip was dissolved. On the same day, Pal paid $18,000 to register and issue the shares and $38,000 for other direct costs of combination. Prepare the journal entry for the acquisition of Sip Corporation (excluding the additional costs paid).
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS