52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Telecom Inc Intron Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on
July 1, 2022. On the date, the balance sheets of each of these companies were as follows:
Telecom Inc
Intron Inc
Cash and short-term securities
Inventory
Plant and equipment (net)
Total assets
Current liabilities
Bonds payable
Common shares
Retained earnings
Total liabilities and equity
$920,000
150,000
330,000
$1,400,000
$420,000
700,000
180,000
100,000
$1,400,000
On that date, the fair values of Intron's assets and liabilities were as follows:
Cash and short-term securities
Inventory
Plant and equipment (net)
Current liabilities
Bonds payable
$200,000
20,000
180,000
$400,000
$90,000
200,000
60,000
50,000
$400,000
$200,000
$15,000
$400,000
$90,000
$210,000
Prepare the consolidated balance sheet on
date of acquisition.
Transcribed Image Text:52) Telecom Inc has decided to purchase the shares of Intron Inc. for $300,000 in cash on July 1, 2022. On the date, the balance sheets of each of these companies were as follows: Telecom Inc Intron Inc Cash and short-term securities Inventory Plant and equipment (net) Total assets Current liabilities Bonds payable Common shares Retained earnings Total liabilities and equity $920,000 150,000 330,000 $1,400,000 $420,000 700,000 180,000 100,000 $1,400,000 On that date, the fair values of Intron's assets and liabilities were as follows: Cash and short-term securities Inventory Plant and equipment (net) Current liabilities Bonds payable $200,000 20,000 180,000 $400,000 $90,000 200,000 60,000 50,000 $400,000 $200,000 $15,000 $400,000 $90,000 $210,000 Prepare the consolidated balance sheet on date of acquisition.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education