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The balance sheet of Aylmer Enterprises as at December 31, Y4 is as follows: Cash Inventory Accounts Receivable Property, Plant and Equipment Accumulated Depreciation TOTAL ASSETS Current Liabilities $ 68,596 106,956 141,056 1,613,599 804,677 $ 1,125,530 $ 245,961 Bonds Payable 304,941 Common Shares 256,000 Retained Earnings 318,628 TOTAL LIABILITIES & EQUITY $ 1,125,530 REQUIRED: Prepare Aylmer's consolidated balance sheet after the proposed transaction occurred using the worksheet approach. Also include any journal entries you feel are necessary. Show all your work/calculations. Effective January 1, Y5, Aylmer proposes to issue 91,200 common shares. The shares are currently trading at $19.25 per share. Aylmer is purchasing all of the common shares of Orwell Industries. In determining the acquisition price, the management of Aylmer noted that Orwell Industries has unrecorded customer service contracts and directed its accounting staff to reflect this when recording the acquisition. An independent appraiser placed a value of $158,000 on this unrecorded intangible asset. Direct costs associated with the acquisition were as follows: Costs of issuing shares Professional fees $42,000 51,000 The balance sheet of Orwell Industries as at December 31, Y4 is as follows: Carrying Value Fair Value Cash $ 52,147 Accounts Receivable 279,640 52,147 284,500 Inventory 191,554 176,500 Property, Plant and Equipment 1,186,593 1,050,000 Accumulated Depreciation 301,444 TOTAL ASSETS $1,408,490 Current Liabilities $ 141,588 141,588 Warranty Liability 100,058 132,000 Common Shares 670,000 Retained Earnings 496,844 TOTAL LIABILITIES & EQUITY $1,408,490 Orwell is to be wound up after the sale.

The balance sheet of Aylmer Enterprises as at December 31, Y4 is as follows: Cash Inventory Accounts Receivable Property, Plant and Equipment Accumulated Depreciation TOTAL ASSETS Current Liabilities $ 68,596 106,956 141,056 1,613,599 804,677 $ 1,125,530 $ 245,961 Bonds Payable 304,941 Common Shares 256,000 Retained Earnings 318,628 TOTAL LIABILITIES & EQUITY $ 1,125,530 REQUIRED: Prepare Aylmer's consolidated balance sheet after the proposed transaction occurred using the worksheet approach. Also include any journal entries you feel are necessary. Show all your work/calculations. Effective January 1, Y5, Aylmer proposes to issue 91,200 common shares. The shares are currently trading at $19.25 per share. Aylmer is purchasing all of the common shares of Orwell Industries. In determining the acquisition price, the management of Aylmer noted that Orwell Industries has unrecorded customer service contracts and directed its accounting staff to reflect this when recording the acquisition. An independent appraiser placed a value of $158,000 on this unrecorded intangible asset. Direct costs associated with the acquisition were as follows: Costs of issuing shares Professional fees $42,000 51,000 The balance sheet of Orwell Industries as at December 31, Y4 is as follows: Carrying Value Fair Value Cash $ 52,147 Accounts Receivable 279,640 52,147 284,500 Inventory 191,554 176,500 Property, Plant and Equipment 1,186,593 1,050,000 Accumulated Depreciation 301,444 TOTAL ASSETS $1,408,490 Current Liabilities $ 141,588 141,588 Warranty Liability 100,058 132,000 Common Shares 670,000 Retained Earnings 496,844 TOTAL LIABILITIES & EQUITY $1,408,490 Orwell is to be wound up after the sale.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 2PB
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Please use excel to complete the work, be sure to show your work and state any assumptions that you make.

The balance sheet of Aylmer Enterprises as at December 31, Y4 is as follows: Cash Inventory Accounts Receivable Property, Plant and Equipment Accumulated Depreciation TOTAL ASSETS Current Liabilities $ 68,596 106,956 141,056 1,613,599 804,677 $ 1,125,530 $ 245,961 Bonds Payable 304,941 Common Shares 256,000 Retained Earnings 318,628 TOTAL LIABILITIES & EQUITY $ 1,125,530 REQUIRED: Prepare Aylmer's consolidated balance sheet after the proposed transaction occurred using the worksheet approach. Also include any journal entries you feel are necessary. Show all your work/calculations. Effective January 1, Y5, Aylmer proposes to issue 91,200 common shares. The shares are currently trading at $19.25 per share. Aylmer is purchasing all of the common shares of Orwell Industries. In determining the acquisition price, the management of Aylmer noted that Orwell Industries has unrecorded customer service contracts and directed its accounting staff to reflect this when recording the acquisition. An independent appraiser placed a value of $158,000 on this unrecorded intangible asset. Direct costs associated with the acquisition were as follows: Costs of issuing shares Professional fees $42,000 51,000 The balance sheet of Orwell Industries as at December 31, Y4 is as follows: Carrying Value Fair Value Cash $ 52,147 Accounts Receivable 279,640 52,147 284,500 Inventory 191,554 176,500 Property, Plant and Equipment 1,186,593 1,050,000 Accumulated Depreciation 301,444 TOTAL ASSETS $1,408,490 Current Liabilities $ 141,588 141,588 Warranty Liability 100,058 132,000 Common Shares 670,000 Retained Earnings 496,844 TOTAL LIABILITIES & EQUITY $1,408,490 Orwell is to be wound up after the sale.
Transcribed Image Text:The balance sheet of Aylmer Enterprises as at December 31, Y4 is as follows: Cash Inventory Accounts Receivable Property, Plant and Equipment Accumulated Depreciation TOTAL ASSETS Current Liabilities $ 68,596 106,956 141,056 1,613,599 804,677 $ 1,125,530 $ 245,961 Bonds Payable 304,941 Common Shares 256,000 Retained Earnings 318,628 TOTAL LIABILITIES & EQUITY $ 1,125,530 REQUIRED: Prepare Aylmer's consolidated balance sheet after the proposed transaction occurred using the worksheet approach. Also include any journal entries you feel are necessary. Show all your work/calculations. Effective January 1, Y5, Aylmer proposes to issue 91,200 common shares. The shares are currently trading at $19.25 per share. Aylmer is purchasing all of the common shares of Orwell Industries. In determining the acquisition price, the management of Aylmer noted that Orwell Industries has unrecorded customer service contracts and directed its accounting staff to reflect this when recording the acquisition. An independent appraiser placed a value of $158,000 on this unrecorded intangible asset. Direct costs associated with the acquisition were as follows: Costs of issuing shares Professional fees $42,000 51,000 The balance sheet of Orwell Industries as at December 31, Y4 is as follows: Carrying Value Fair Value Cash $ 52,147 Accounts Receivable 279,640 52,147 284,500 Inventory 191,554 176,500 Property, Plant and Equipment 1,186,593 1,050,000 Accumulated Depreciation 301,444 TOTAL ASSETS $1,408,490 Current Liabilities $ 141,588 141,588 Warranty Liability 100,058 132,000 Common Shares 670,000 Retained Earnings 496,844 TOTAL LIABILITIES & EQUITY $1,408,490 Orwell is to be wound up after the sale.
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