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The stockholders equity of Acme Corporation at December 31, 2010 consisted of the following: Common stock $ 10 par 36,000 shares outstanding 360,000.00 Additional Paid In Capital 80.000.00 Retained Earnings 60,000.00 Company has been in a tight working capital position and at January 1, 2011 sold 14,000 previously unissued common stock to Bugs Corporation for $280,0000 All of Acme identifiable assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 4 years that was undervalued by $ 80,000 and equipment with remaining useful life of 10 years that was overvalued by $10,000 During 2011, Acme reported net income of $150,000 and paid dividends Mar 31 of $30,000; June 30 of $30,000; Sept 30 of $ 15,000 and Dec 31 $15,000 for a total $90,000 a. record the entry for the dividends paid every quarter b. record the entry by acme corp on issue of the shares to Bugs January 1 c record any other nécessary entries by Acme d what is the net amount of goodwill to be recorded by Acme corp

The stockholders equity of Acme Corporation at December 31, 2010 consisted of the following: Common stock $ 10 par 36,000 shares outstanding 360,000.00 Additional Paid In Capital 80.000.00 Retained Earnings 60,000.00 Company has been in a tight working capital position and at January 1, 2011 sold 14,000 previously unissued common stock to Bugs Corporation for $280,0000 All of Acme identifiable assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 4 years that was undervalued by $ 80,000 and equipment with remaining useful life of 10 years that was overvalued by $10,000 During 2011, Acme reported net income of $150,000 and paid dividends Mar 31 of $30,000; June 30 of $30,000; Sept 30 of $ 15,000 and Dec 31 $15,000 for a total $90,000 a. record the entry for the dividends paid every quarter b. record the entry by acme corp on issue of the shares to Bugs January 1 c record any other nécessary entries by Acme d what is the net amount of goodwill to be recorded by Acme corp

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 stockholders equity of Acme Corporation at December 31, 2010 consisted of the following: Common stock $ 10 par 36,000 shares outstanding 360,000.00 Additional Paid In Capital 80.000.00 Retained Earnings 60,000.00 Company has been in a tight working capital position and at January 1, 2011 sold 14,000 previously unissued common stock to Bugs Corporation for $280,0000 All of Acme identifiable assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 4 years that was undervalued by $ 80,000 and equipment with remaining useful life of 10 years that was overvalued by $10,000 During 2011, Acme reported net income of $150,000 and paid dividends Mar 31 of $30,000; June 30 of $30,000; Sept 30 of $ 15,000 and Dec 31 $15,000 for a total $90,000 a. record the entry for the dividends paid every quarter b. record the entry by acme corp on issue of the shares to Bugs January 1 c record any other necessary entries by Acme d what is the net amount of goodwill to be recorded by Acme corp
Transcribed Image Text:The stockholders equity of Acme Corporation at December 31, 2010 consisted of the following: Common stock $ 10 par 36,000 shares outstanding 360,000.00 Additional Paid In Capital 80.000.00 Retained Earnings 60,000.00 Company has been in a tight working capital position and at January 1, 2011 sold 14,000 previously unissued common stock to Bugs Corporation for $280,0000 All of Acme identifiable assets and liabilities were recorded at fair value at this date except for building with remaining useful life of 4 years that was undervalued by $ 80,000 and equipment with remaining useful life of 10 years that was overvalued by $10,000 During 2011, Acme reported net income of $150,000 and paid dividends Mar 31 of $30,000; June 30 of $30,000; Sept 30 of $ 15,000 and Dec 31 $15,000 for a total $90,000 a. record the entry for the dividends paid every quarter b. record the entry by acme corp on issue of the shares to Bugs January 1 c record any other necessary entries by Acme d what is the net amount of goodwill to be recorded by Acme corp
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