After the combination, what is the total stockholders’ equity of Parent Corporation? The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows:ParentSubsidiaryCapital Stock, P100 parAdditional paid in capitalRetained Earnings1,500,000800,000200,000400,000600,000300,000On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets andliabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect costand P10,000 for SEC registration of equity securities.

Solution Given Parent Subsidiary Capital stock 1500000 800000 Additional paid…

The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows: Capital Stock, P100 par Additional paid in capital Retained Earnings Parent 1,500,000 200,000 600,000 Subsidiary 800,000 400,000 300,000 On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets and liabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect cost and P10,000 for SEC registration of equity securities.

The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows: Capital Stock, P100 par Additional paid in capital Retained Earnings Parent 1,500,000 200,000 600,000 Subsidiary 800,000 400,000 300,000 On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets and liabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect cost and P10,000 for SEC registration of equity securities.

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

After the combination, what is the total stockholders’ equity of Parent Corporation?

The stockholder's equities of Parent Corporation and Subsidiary Corporation at July 1, 2020 were as follows:
Parent
Subsidiary
Capital Stock, P100 par
Additional paid in capital
Retained Earnings
1,500,000
800,000
200,000
400,000
600,000
300,000
On July 2, 2020, Parent issued 15,000 of its shares with a market value of P120 per share for the assets and
liabilities of Subsidiary, and Subsidiary was dissolved. On the same day, Parent paid P5,000 for indirect cost
and P10,000 for SEC registration of equity securities.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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