ollowing are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair value or 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 Book Values Values 12/31 $ 158,000 274,500 582,500 710, 000 665,000 277,000 (339, 000) (148, 000) (940, 000) (660, 000) 0 (70, 000) (450, 000) (1,038, 000) 978, 000 Sol Company lote: Parentheses Indicate a credit balance. 12/31 $ 70, 500 305,000 267,000 221, 000 299,000 256,000 (156, 000) (42, 500) (607, 500) 0 (210, 000) (90, 000) (290, 000) (343, 500) 321, 000 Fair Values 12/31 $ 70, 500 305,000 323, 100 192, 500 363, 300 287, 300 (156, 000) (42, 500) (607, 500) 0 000 00
ollowing are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair value or 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 Book Values Values 12/31 $ 158,000 274,500 582,500 710, 000 665,000 277,000 (339, 000) (148, 000) (940, 000) (660, 000) 0 (70, 000) (450, 000) (1,038, 000) 978, 000 Sol Company lote: Parentheses Indicate a credit balance. 12/31 $ 70, 500 305,000 267,000 221, 000 299,000 256,000 (156, 000) (42, 500) (607, 500) 0 (210, 000) (90, 000) (290, 000) (343, 500) 321, 000 Fair Values 12/31 $ 70, 500 305,000 323, 100 192, 500 363, 300 287, 300 (156, 000) (42, 500) (607, 500) 0 000 00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
Items
Cash
Receivables
Inventory
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 Book Values
Values 12/31
12/31
$ 158,000
274, 500
$ 70, 500
305,000
582, 500
267,000
710,000
221, 000
665, 000
299,000
277,000
256, 000
(339,000)
(156, 000)
(148,000)
(42, 500)
(607, 500)
(940, 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)
(450, 000)
(1,038, 000)
978, 000
Sol Company
0
(210, 000)
(90, 000)
(290, 000)
(343, 500)
321, 000
Amounts
Fair Values
12/31
$ 70, 500
305,000
323, 100
192, 500
363, 300
287, 300
(156, 000)
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $154,000 in cash and Issuing 16,700 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,300 as well as $10,600 in stock Issuance costs.
(42, 500)
(607, 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.
000000
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