Please don't provide answer in image format thank you. To record the acquisition0>(R)Debit00000Creditb. Prepare working paper eliminating entries (E) and (R) to combine the accounts of Potluck and Sauers at June 30, 2022.DebitCredit00000To revalue Sauer's assets and liabilities to fair valueTo eliminate Sauer's equity accounts against the investment account000000000000000000 Potluck Corp. acquired all of the stock of Sauers Corp. on June 30, 2022, in an acquisition reported as a stock acquisition. Sauers' trial balance at the date of acquisition, along with the fair values of itsassets and liabilities, are:Tangible assetsIntangible assetsLiabilitiesCapital stockRetained earningsAccumulated other comprehensive incomeTotalBook Value Dr (Cr)$36,000,000Fair ValueDr (Cr)$15,000,0009,000,000 54,000,000(33,600,000) (33,000,000)(6,000,000)(5,340,000)(60,000)$0Potluck pays $54 million in cash and issues 900,000 shares of stock to the former owners of Sauers. Potluck's stock has a par value of $0.01 /share. The market price of the shares at the date ofacquisition, $21 /share, is used to value the shares issued. Registration fees for the stock are $300,000 and legal and consulting fees connected with the acquisition are $360,000, both paid in cash.RequiredNote: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions.a. Prepare the journal entry Potluck made to record the stock acquisition on its own books on June 30, 2022.

An acquisition is a kind of business transaction in which one company acquires all or part of the…

Potluck Corp. acquired all of the stock of Sauers Corp. on June 30, 2022, in an acquisition reported as a stock acquisition. Sauers' trial balance at the date of acquisition, along with the fair values of its assets and liabilities, are: Tangible assets Intangible assets Liabilities Capital stock Retained earnings Accumulated other comprehensive income Total Fair Value Dr (Cr) $15,000,000 9,000,000 54,000,000 Book Value Dr (Cr) $36,000,000 (33,600,000) (33,000,000) (6,000,000) (5,340,000) (60,000) $0 Potluck pays $54 million in cash and issues 900,000 shares of stock to the former owners of Sauers. Potluck's stock has a par value of $0.01 /share. The market price of the shares at the date of acquisition, $21 /share, is used to value the shares issued. Registration fees for the stock are $300,000 and legal and consulting fees connected with the acquisition are $360,000, both paid in cash. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry Potluck made to record the stock acquisition on its own books on June 30, 2022.

Potluck Corp. acquired all of the stock of Sauers Corp. on June 30, 2022, in an acquisition reported as a stock acquisition. Sauers' trial balance at the date of acquisition, along with the fair values of its assets and liabilities, are: Tangible assets Intangible assets Liabilities Capital stock Retained earnings Accumulated other comprehensive income Total Fair Value Dr (Cr) $15,000,000 9,000,000 54,000,000 Book Value Dr (Cr) $36,000,000 (33,600,000) (33,000,000) (6,000,000) (5,340,000) (60,000) $0 Potluck pays $54 million in cash and issues 900,000 shares of stock to the former owners of Sauers. Potluck's stock has a par value of $0.01 /share. The market price of the shares at the date of acquisition, $21 /share, is used to value the shares issued. Registration fees for the stock are $300,000 and legal and consulting fees connected with the acquisition are $360,000, both paid in cash. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry Potluck made to record the stock acquisition on its own books on June 30, 2022.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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