The following book and fair values were available for Westmont Company as of March 1. Fair Value $ 401,250 1,019,250 2,346,750 873,750 (114,500) Book Value Inventory 24 439,750 776, 250 2,025, 000 Land Buildings Customer relationships Accounts payable Common stock (114,500) (2,000,000) (500, 000) (445,000) (506,500) 325,000 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo Company pays $4,170,000 cash and issues 24,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $34,500 and Arturo pays $50,600 for legal fees to complete the transaction. Prepare Arturo's journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 > 2 3 Record the acquisition of Westmont Company.

The following book and fair values were available for Westmont Company as of March 1. Fair Value $ 401,250 1,019,250 2,346,750 873,750 (114,500) Book Value Inventory 24 439,750 776, 250 2,025, 000 Land Buildings Customer relationships Accounts payable Common stock (114,500) (2,000,000) (500, 000) (445,000) (506,500) 325,000 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo Company pays $4,170,000 cash and issues 24,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $34,500 and Arturo pays $50,600 for legal fees to complete the transaction. Prepare Arturo's journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 > 2 3 Record the acquisition of Westmont Company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 644,750 $ 609,000 Land 779,250 1,086,750 Buildings 1,770,000 2,138,250 Customer relationships 0 842,250 Accounts payable (102,000 ) (102,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (424,500 ) Revenues (457,000 ) Expenses 289,500 Arturo Company pays $4,130,000 cash and issues 28,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $32,400 and Arturo pays $49,800 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…
The following are the balances of BIG Company and GIRL Company as of January 1, 20x1. Fair Fair Вook Value Вook BIG COMPANY Market Market Value Value Value ASSE TS LIABILITY AND EQUITY Cash 105,000 105,000 Accounts Payable 470,000 Mortgage Payable 300,000 Ordinary Share, 20 par 300,000 330,000 Accounts Receivable 550,000 1,300,000 1,320,000 Inventory Property, Plant and Equipment, net 220,000 2,000,000 4,790,000 4,500,000 Share Premium 775,000 ? Goodwill 100,000 100,000 Retained Earnings 1,390,000 ? Fair Вook Fair Market Book GIRL COMPANY Market Value Value Value Value Cash 300,000 Accounts Payable 470,000 Mortgage Payable 300,000 Ordinary Share, 20 par 300,000 550,000 500,000 Accounts Receivable 600,000 2,500,000 2,480,000 Inventory Property, Plant and Equipment, net 350,000 3,000,000 8,910,000 10,000,000 Share Premium 150,000 2,760,000 ? Goodwill 100,000 Retained Earnings 1,500,000 ? The companies combined their resources and formed BIGGEST Co. Research and development with a fair…
The following book and fair values were available for Beech Company as of June 1: Inventory Land Buildings Trademarks Items Accounts payable Common stock 717 Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Book Value Fair Value $ 406,000 817,500 2,005,000 0 $363,500 1,087,500 2,314,750 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 0 0 0 9 0 Alder Company pays $4,050,000 cash and issues 22,800 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,500, and Alder pays $44,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 245,500 $ 203,750 Land 820,500 1,072,500 Buildings 2,115,000 2,457,750 Customer relationships 0 833,250 Accounts payable (96,000 ) (96,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (413,000 ) Revenues (494,000 ) Expenses 322,000 Arturo Company pays $4,160,000 cash and issues 22,200 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $31,900 and Arturo pays $51,200 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont.
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value Inventory $ 350,000 $ 298,250 Land 820,500 1,085,250 Buildings 2,040,000 2,361,000 Customer relationships 0 871,500 Accounts payable (105,000) (105,000) Commom stock (2,000,000) Additional paid-in capital (500,000) Retained earnings 1/1 (425,500) Revenues (496,000) Expenses 316,000 Aturo pays cash of $4,380,000 to acquire Westmont. No stock is issued and…
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 200,500 $ 167,000 Land 817,500 1,097,250 Buildings 2,175,000 2,506,500 Customer relationships 0 860,250 Accounts payable (87,000 ) (87,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings, 1/1 (431,500 ) Revenues (478,500 ) Expenses 304,000 Arturo Company pays $3,650,000 cash and issues 22,500 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $33,600 and Arturo pays $49,300 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 296,000 $ 242,750 Land 766,500 1,034,250 Buildings 2,150,000 2,453,000 Customer relationships 0 846,750 Accounts payable (106,500 ) (106,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (428,000 ) Revenues (467,000 ) Expenses 289,000 Arturo Company pays $3,400,000 cash and issues 25,400 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,300 and Arturo pays $51,100 for legal fees to complete the transaction. Prepare Arturo’s journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…
The following are the balances of BIG Company and GIRL Company as of January 1, 20x1. Fair Fair Book Value Вook BIG COMPANY Market Market Value Value Value ASSETS LIABILITY AND EQUITY Cash 105,000 105,000 Accounts Payable 300,000 330,000 Accounts Receivable 470,000 Mortgage Payable 300,000 Ordinary Share, 20 par 550,000 1,300,000 1,320,000 Inventory Property, Plant and Equipment, net Goodwill 220,000 2,000,000 4,790,000 4,500,000 Share Premium 775,000 100,000 100,000 Retained Earnings 1,390,000 Fair Вook Fair Market Book GIRL COMPANY Market Value Value Value Value Cash 300,000 300,000 Accounts Payable 550,000 500,000 Accounts Receivable 600,000 350,000 470,000 Mortgage Payable 300,000 Ordinary Share, 20 par 3,000,000 2,500,000 2,480,000 Inventory Property, Plant and Equipment, net Goodwill 8,910,000 10,000,000 Share Premium 100,000 Retained Earnings 2,760,000 ? 150,000 1,500,000 The companies combined their resources and formed BIGGEST Co. Research and development with a fair market…
ancial statements of Calloway. Co nly please Requirea inrormauon (The following information applies to the questions displeyed below} The financiai statementsiof Calia and corresponding antounSI ASSets $850 Beginning Reteined Earian mpany prepated et the end of the cutrent year contained the foallowing elements $22 000 Liablities 2 Common Stock = $5,200, Revenue= $11.4O0 Dividends $3.850 Encing Retained Earmings $7200. Based on this informaion what kekinses repertea on Caloway's ircome statement tot the cuttent year? Mutple Cholce $14.400 $7.200 $3.350 s8.050 search
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 Padre Company Book Values $ 12/31 354, 750 242, 250 482, 500 Sol Company Book Values 12/31 56,700 $ 312,000 174,000 194, 000 720,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660, 000) (210, 000) (70,000) (90, 000) (422,500) (260, 000) Fair Values (1,000,000) (354,700) 947,000 333,000 12/31 56, 700 312, 000 229, 900 171, 200 395, 300 290, 800 (152,000) (54,500) (532, 500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of…
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…
The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets P550,000 P585,000Property and Other…