Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts.Cash InventoryConstruction permitsGoodwillNotes PayableCommon StockAdditional Paid-in CapitalRetained Earnings 14) On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying$400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market pricewas $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuancecosts of $8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris andShanta immediately preceding the acquisition is shown below, including fair values for Shanta's assetsand liabilities.PerisShantaShantaBook ValueBook ValueFair Value$140,000Cash490,000$140,000Accounts Receivable560,000280,000280,000Inventory520,000200,000260,000Land460,000150,000140,000Plant Assets – Net980,000325,000355,000Construction Permits380,000170,000190,000(140,000)(45,000)Accounts PayableOther accrued expensesNotes PayableCommon Stock ($30 par)Common Stock ($20 par)(460,000)(160,000)(800,000)(960,000)(140,000)(45,000)(460,000)(460,000)(200,000)Additional P.I.C(192,000)(818,000)(80,000)(340,000)Retained Earnings

The consolidated balances of various balance sheet accounts as,

Answered: uction permi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts.

Cash
Inventory
Construction permits
Goodwill
Notes Payable
Common Stock
Additional Paid-in Capital
Retained Earnings

14) On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying
$400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price
was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance
costs of $8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and
Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets
and liabilities.
Peris
Shanta
Shanta
Book Value
Book Value
Fair Value
$140,000
Cash
490,000
$140,000
Accounts Receivable
560,000
280,000
280,000
Inventory
520,000
200,000
260,000
Land
460,000
150,000
140,000
Plant Assets – Net
980,000
325,000
355,000
Construction Permits
380,000
170,000
190,000
(140,000)
(45,000)
Accounts Payable
Other accrued expenses
Notes Payable
Common Stock ($30 par)
Common Stock ($20 par)
(460,000)
(160,000)
(800,000)
(960,000)
(140,000)
(45,000)
(460,000)
(460,000)
(200,000)
Additional P.I.C
(192,000)
(818,000)
(80,000)
(340,000)
Retained Earnings

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution