Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's books to record the business combination. E1-7 Appendix] Journal entries to record a pooling On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at $15 per share several years earlier. 0n this date, Pam issued 1.5 of its $10 par value shares for each of the other 98,000 outstand- ing shares of Sun in a pooling of interests in which Sun Corporation was dissolved. Sun Corporation's after-dlosing trial balance on December 31, 1999, consisted of the following (in thausands): Current assets 800 1,500 Plant and cquipment-net Liabilities $ 200 500 000 600 Capital stock, $5 par Additional paid-in capital Retained earnings 2.300 $2,300 REQUIRED: Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests. (Hint: Do not forget to consider the 2,000 shares of Sun held by Pam on January 1, 2000.)
Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's books to record the business combination. E1-7 Appendix] Journal entries to record a pooling On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at $15 per share several years earlier. 0n this date, Pam issued 1.5 of its $10 par value shares for each of the other 98,000 outstand- ing shares of Sun in a pooling of interests in which Sun Corporation was dissolved. Sun Corporation's after-dlosing trial balance on December 31, 1999, consisted of the following (in thausands): Current assets 800 1,500 Plant and cquipment-net Liabilities $ 200 500 000 600 Capital stock, $5 par Additional paid-in capital Retained earnings 2.300 $2,300 REQUIRED: Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests. (Hint: Do not forget to consider the 2,000 shares of Sun held by Pam on January 1, 2000.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's books to record the business combination. E1-7 Appendix] Journal entries to record a pooling On January 1, 2000, Pam Corporation held 2,000 shares of Sun Corporation common stock acquired at $15 per share several years earlier. 0n this date, Pam issued 1.5 of its $10 par value shares for each of the other 98,000 outstand- ing shares of Sun in a pooling of interests in which Sun Corporation was dissolved. Sun Corporation's after-dlosing trial balance on December 31, 1999, consisted of the following (in thausands): Current assets 800 1,500 Plant and cquipment-net Liabilities $ 200 500 000 600 Capital stock, $5 par Additional paid-in capital Retained earnings 2.300 $2,300 REQUIRED: Prepare a journal entry (or entries) on Pam's books to account for the pooling of interests. (Hint: Do not forget to consider the 2,000 shares of Sun held by Pam on January 1, 2000.)
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