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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 $ 240, 250 253,500 490,000 637,500 745,000 317,000 (302,000) (100,000) Accounts (1,040,000) (660,000) Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 0 (70,000) (465,000) (984,250) 938,000 Sol Company Amounts Book Values 12/31 $ 71,300 341,000 243,000 195,000 274,000 241,000 (164,000) (37,000) (552,500) 0 (210,000) (90,000) (285,000) (433,800) 407,000 Fair values 12/31 $ 71,300 341,000 300,400 165,200 334,800 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $165,000 in cash and Issuing 16,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,900 as well as $10,000 in stock Issuance costs. 271,300 (164,000) (37,000) (552,500) Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. 0 0 0 0

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 $ 240, 250 253,500 490,000 637,500 745,000 317,000 (302,000) (100,000) Accounts (1,040,000) (660,000) Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 0 (70,000) (465,000) (984,250) 938,000 Sol Company Amounts Book Values 12/31 $ 71,300 341,000 243,000 195,000 274,000 241,000 (164,000) (37,000) (552,500) 0 (210,000) (90,000) (285,000) (433,800) 407,000 Fair values 12/31 $ 71,300 341,000 300,400 165,200 334,800 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $165,000 in cash and Issuing 16,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,900 as well as $10,000 in stock Issuance costs. 271,300 (164,000) (37,000) (552,500) Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. 0 0 0 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Accounts Padre Company Book Values 12/31 $ 240, 250 253,500 490,000 637,500 745,000 317,000 Inventory Land Buildings and equipment Franchise agreements Goodwill (302,000) (100,000) Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 (1,040,000) (660,000) (70,000) (465,000) (984,250) 938,000 Sol Company Book Values 12/31 $ 71,300 341,000 243,000 195,000 274,000 Amounts 241,000 (164,000) (37,000) (552,500) 0 (210,000) (90,000) (285,000) (433,800) 407,000 Note: Parentheses Indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $165,000 in cash and Issuing 16,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,900 as well as $10,000 in stock Issuance costs. Fair values 12/31 $ 71,300 341,000 300,400 165,200 334,800 271,300 (164,000) (37,000) (552,500) Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. 0 0
Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Accounts Padre Company Book Values 12/31 $ 240, 250 253,500 490,000 637,500 745,000 317,000 Inventory Land Buildings and equipment Franchise agreements Goodwill (302,000) (100,000) Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 (1,040,000) (660,000) (70,000) (465,000) (984,250) 938,000 Sol Company Book Values 12/31 $ 71,300 341,000 243,000 195,000 274,000 Amounts 241,000 (164,000) (37,000) (552,500) 0 (210,000) (90,000) (285,000) (433,800) 407,000 Note: Parentheses Indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $165,000 in cash and Issuing 16,300 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,900 as well as $10,000 in stock Issuance costs. Fair values 12/31 $ 71,300 341,000 300,400 165,200 334,800 271,300 (164,000) (37,000) (552,500) Required: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed: Note: Input all amounts as positive values. 0 0
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