Wren Corporation Balance Sheet January 1,2015 Assets Liabilities and Equity $ 79,000 92,000 55,000 294,000 30,000 $550,000 Current liabilities .. Bonds payable Accounts receivable $125,000 Inventory Other current assets 100,000 200,000 50,000 Common stock. Equipment (net) Trademark.. Paid-in capital in excess of par Retained earnings . 75,000 Total assets. Total liabilities and equity $550,000
Wren Corporation Balance Sheet January 1,2015 Assets Liabilities and Equity $ 79,000 92,000 55,000 294,000 30,000 $550,000 Current liabilities .. Bonds payable Accounts receivable $125,000 Inventory Other current assets 100,000 200,000 50,000 Common stock. Equipment (net) Trademark.. Paid-in capital in excess of par Retained earnings . 75,000 Total assets. Total liabilities and equity $550,000
Wren Corporation Balance Sheet January 1,2015 Assets Liabilities and Equity $ 79,000 92,000 55,000 294,000 30,000 $550,000 Current liabilities .. Bonds payable Accounts receivable $125,000 Inventory Other current assets 100,000 200,000 50,000 Common stock. Equipment (net) Trademark.. Paid-in capital in excess of par Retained earnings . 75,000 Total assets. Total liabilities and equity $550,000
Born Corporation agrees to acquire the net assets ofWren Corporation on January 1, 2015.Wren has the following balance sheet on the date of acquisition:
An appraiser determines that in-process R&D exists and has an estimated value of $20,000. The appraisal indicates that the following assets have fair values that differ from their book values:
Use value analysis to prepare the entry on the books of Born Corporation to acquire the net assets ofWren Corporation under each of the following purchase price scenarios: 1. Purchase price is $540,000. 2. Purchase price is $350,000.
Transcribed Image Text:Wren Corporation
Balance Sheet
January 1,2015
Assets
Liabilities and Equity
$ 79,000
92,000
55,000
294,000
30,000
$550,000
Current liabilities ..
Bonds payable
Accounts receivable
$125,000
Inventory
Other current assets
100,000
200,000
50,000
Common stock.
Equipment (net)
Trademark..
Paid-in capital in excess of par
Retained earnings .
75,000
Total assets.
Total liabilities and equity
$550,000
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.
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