Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair valuesfor Sol Company accounts.CashReceivablesInventoryItemsLandBuilding and equipment (net)Franchise agreementsAccounts payableAccrued expensesLong-term liabilitiesCommon stock-$20 par valueCommon stock-$5 par valueAdditional paid-in capitalRetained earnings, 1/1RevenuesExpensesNote: Parentheses indicate a credit balance.InventoryLandAccountsPadre CompanyBook Values12/31$509,000234,750412,500725,000685,000274,000(380,000)(145,000)(917,500)(660,000)Buildings and equipmentFranchise agreementsGoodwillRevenuesAdditional paid-in capitalExpensesRetained earnings, 1/1(70,000)(627,500)(968,250)928,000101010Sol CompanyBook Values Fair ValuesAmounts12/31$57,350304,000238,000154,000407,000226,000(195,000)(52,750)(555,000)0On December 31, Padre acquires Sol's outstanding stock by paying $412,000 in cash and issuing 10,200 shares of its own commonstock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,800 as well as $10,500 in stock issuance costs.(210,000)(90,000)(255,000)(420,600)392,000Required:Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed:Note: Input all amounts as positive values.12/31$ 57,350304,000296,500133,000476,700257,800(195,000)(52,750)(555,000)000000

Retained earnings on 12/31 = Retained earnings on 1/1 + Net income = Retained earnings on 1/1 +…

Answered: te: Input all amounts as positive…

te: Input all amounts as positive values. Accounts ventory nd ildings and equipment anchise agreements Dodwill evenues Editional paid-in capital penses etained earnings, 1/1 Amounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/11 Revenues Expenses Padre Company Sol Company Book Values Book Values Fair Values $ 12/31 12/31 306,750 62,450 $ 257,250 376,000 590,000 291,000 805,000 140,000 697,500 335,000 12/31 (210,000) (70,000) (90,000) (625,000) (297,000) (990,500) (364,700) 934,000 337,000 62,450 376,000 344,200 119,800 402,500 285,200 (205,000) 230,000 250,000 (364,000) (205,000) (156,000) (955,000) (585,000) (585,000) (39,750) (39,750) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $137,000 in cash and issuing 17,700 shares of its own common stock…
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…
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 Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Padre Company Book Values Expenses Retained earnings, 1/1 Retained earnings, 12/31 $ Amounts 12/31 Sol Company Book Values 12/31 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $188,000 in cash and issuing 15,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $21,800 as well as $6,100 in stock issuance costs. 215,000 258, 750 376,000 532,500…
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 Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Sol Company Book Values Book Values Fair Values $ Amounts 12/31 488,250 225,750 632,500 792,500 627,500 225,000 12/31 82,650 $ 330,000 219,000 173,000 334,000 255,000 (303,000) (161,000) (141,000) (49,750) (1,130,000) (550,000) (660,000) (210,000) (70,000) (90,000) (560,000) (306,000) (1,023,500) 976,000 (381,900) 355,000 12/31 Note: Parentheses indicate a credit balance. On December 31, Padre…
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 Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Accounts Buildings and equipment Franchise agreements Goodwill $ Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Book Values 12/31 Amounts Sol Company Book Values 12/31 Fair Values 12/31 59,400 381,000 349, 100 142,900 387,500 268,800 (149,000) (40,000) (1,132,500) (660,000) (660,000) (660,000) 317,000 240,000 381,000 520,000 296,000 762,500 170,000 672,500 321,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $219,000 in cash and issuing…
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…
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 $ 509,000 234,750 412,500 725,000 685,000 274,000 (380,000) (145,000) (917,500) (660,000) Note: Parentheses indicate a credit balance. Inventory Land (70,000) (627,500) (968,250) 928,000 Accounts 0 Sol Company Amounts Book Values 12/31 $ 57,350 304,000 238,000 154,000 407,000 226,000 (195,000) (52,750) (555,000) 0 (210,000) (90,000) (255,000) (420,600) 392,000 Fair Values 12/31 $ 57,350 304,000 296,500 133,000 476,700 257,800 (195,000) (52,750) (555,000) On December 31, Padre acquires Sol's outstanding stock by paying $412,000 in cash and…
The following trial balance relates to Selt.plc for the year ended 31 December 2021: Equity shares of £1 each Share Premium Retained earnings at 1 January 2021 Property at cost Depreciation on property at 1 January 2021 Plant and equipment at cost Depreciation on plant and equipment at 1 January 2021 Inventory at 1 January 2021 Trade receivables Cash and cash equivalents Trade payables 5% Loan repayable 2026 Revenue Purchases Distribution costs Administrative expenses Research and development expenditure Loan Interest paid Dividend paid Further notes: £'000 34,800 22,800 Required: A Statement of Profit or Loss for the year ended 31 December 2021. A Statement of Financial Position as at 31 December 2021 4,900 4,000 6,840 155,000 22,050 12,750 19,600 300 4,000 287,040 £'000 56,000 2,000 7,780 3,200 4,500 1,560 12,000 200,000 287,040 2) 1) Inventory was valued at £3,800,000 on 31 December 2021. (This valuation is before note (4) below is considered). Property includes land valued at…
The following financial information relates to Cams Limited. Statement of Financial Position as at 31 December 2020 and 2021 2021 Ordinary share capital Retained earnings Property, plant and equipment Investments Debentures 12.5% Inventory Trade debtors Prepaid expenses Trade creditors Bank overdraft SARS (income tax) Shareholders for dividends R 400 000 000 Profit before interest and tax Depreciation on equipment Dividends received on investments Interest on dividends Income tax 55 230 000 165 000 20 000 124 000 37 000 25 21 000 000 5 000 30 000 Statement of comprehensive income for the year 31 December 2021 REGENT BUSINESS SCHOOL (RBS) ACADEMIC AND ASSESSMENT CALENDAR-JANUARY 2022 Note no. 1 for the year ended 31 December 2020 and 2021 Property, plant and equipment Land and building at cost Equipment at carrying value R 295 000 5000 195 000 2021 (R) 200 000 30.000 230 000 110 000 60 000 R 2020 120 000 28 500 1500 42 500 25 000 7 500 20 000 BACHELOR OF COMMERCE IN HUMAN RESOURCE…
Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the Statement ofFinancial Position and additional information provided below:INFORMATIONThe financial position of Gatti Limited as at 31 December 2022 is reflected the following statement:Statement of Financial Position as at 31 December 2022 R ASSETSNon-current assets 1 400 000Property, plant and equipment 1 200 000Fixed deposits 200 000Current assets 5 800 000Inventories 3 400 000Accounts receivable 2 000 000Cash and cash equivalents 400 000Total assets 7 200 000 EQUITY AND LIABILITIESEquity 4 680 000Ordinary share capital 3 600 000Retained earnings 1 080 000Non-current liabilities 720 000Long-term loan 720 000Current liabilities 1 800 000Accounts payable 1 800 000Total equity and liabilities 7 200 000 Additional informationThe following must be taken into account for 2023:■ Sales are forecast at R60 000 000, with a profit margin of 10% and a gross margin of 30%. Fifty percent(50%) of the sales is…
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske $ (742,000) 264,700 187,000 Not given 80,000 (788,000) 498,000 990,000 772,000 Note: Parentheses indicate a credit balance. Consolidated copyrights Consolidated net income C. Consolidated retained earnings d. Consolidated goodwill Not given (600,000) (600,000) ($20 par) (150,000) a. b. Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 Amounts 0 On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $456,000 book value but a…
Mvula Limited Statement of Financial Position as at: 28 February 2021 ASSETS Non-current assets Fixed/tangible assets Financial assets Fixed deposit Current assets Inventory Trade and other receivables Cash and cash equivalents Fixed deposit TOTAL ASSETS 4 320 350 EQUITY AND LIABILITIES Bay Holdings Limited: 30 June 2021.Required:Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors…