Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity The following balances were taken from the trial balance of CARDO Companyand ALLANA Company at the start of the fiscal year 2018:CARDO CoALLANA CoBook ValueP3,000,000 P3,000,000200,000150,0005,000,000650,0004,000,0003,000,0001,800,000-200,000Fair ValueBook ValueP750,000100,000Fair ValueP750,00090,000Cash215,000140,0005,300,000700,0004,200,000Accounts rec.InventoryPPE (10years)GoodwillAccounts pay.Ordinary shares50,0002,000,000100,0001,500,000750,000500,000250,00040,0002,100,00080,000 -1,450,000APICAccumulated earnings25

Cardo co. purchased the net assets of Allana co. Purchase consideration = 50000 shares of 20 par…

Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity

Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity

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

On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: ABC Company XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent abilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 Retained camings 2,200,000…
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: ABC Company XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent abilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 Retained camings 2,200,000…
Prepare the Statement of Comprehensive Income of Royal Traders for the year ended 28February 2021.INFORMATIONThe trial balance, adjustments and additional information given below were extracted from the accounting records ofRoyal Traders on 28 February 2021, the end of the financial year.ROYAL TRADERSPRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2021Balance sheet accounts sectionCapital 301 000Drawings 134 720Vehicles at cost 360 000Equipment at cost 240 000Accumulated depreciation on vehicles 186 000Accumulated depreciation on equipment 62 000Trading inventory 140 000Debtors control 62 000Provision for bad debts 8 000Bank 42 800Cash float 1 000 Creditors control 82 800Mortgage loan: Leo Bank (18% p.a.) 160 000 Nominal accounts section Sales 1 000 000Cost of sales 480 000Sales returns 8 000Salaries and wages 178 000Bad debts 2 000Stationery 4 000Rent expense 42 880Motor expenses 34 000Bad debts recovered 2 000Telephone 14 000Electricity and water 24 000Bank charges 6 000Insurance 12…
The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs – P84,000; Other income - P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) – P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 C. P341,200 D. P344,800
The following pretax amounts pertain to Helsinki Company for the yearended December 31, 2021: Sales, P800,000; Distribution andadministrative costs, P84,000; Other income, P40,000; Interest expense, P4,000; Cost of goods sold, P480,000; Correction of priorperiod error (credit), P16,000; Discontinued operations (debit),P40,000; Cumulative effect of change in accounting policy (credit),P28,000; Retained earnings, January 1 (not restated), P160,000; Dividends declared, P12,000; Income tax rate is 30% How much retained earnings would be shown on December 31, 2021 statement of financial position?
The following information relates to Roland Limited as at 30 June 2023: 0.14:1 The quick ratio is: Select the one correct answer: 9:1 2:1 Total current assets Total assets Current liabilities Total liabilities O 14:1 Inventories Prepayments $'000s 2,200 10,000 1,100 2,400 2,000 45
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: Account Title For ABC Company For XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent liabilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 - Retained Earnings 2,200,000 1,200,000 On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000 . It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the no.n-controlling interest is P700,000 ABC Company also incurred the following fees Broker's fees (paid) 190,000…
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: Account Title For ABC Company For XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent liabilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 - Retained Earnings 2,200,000 1,200,000 On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000 . It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the no.n-controlling interest is P700,000 ABC Company also incurred the following fees Broker's fees (paid) 190,000…
The following information relates to extract from financial data of Dorah Willemse Ltd for the ended 31 December 2010: Current assets - R 65000 Current liabilities - R60000 Accounts receivables - R20000 Inventory - R2000 Goodwill - R40000 Sales (on credit) - R365000 Cost of goods sold - R 280000 Calculate the Current Ratio Select one: A. 2.10 to 1 B. 0.10 to 1 C. 0.90 to 1 D. 1.08 to 1
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…
The following items were excerpted from Poeltl, Inc.'s balance sheets: December 31, 2023December 31, 2022Cash$86,300$59,000Accounts receivable65,60070,600Inventory157,000150.300Property and equipment794,500745,400Accumulated depreciation(184,000)(168,200)Accounts payable61,00050,600Wages payable20,40023,000 Poeltl's 2023 income statement showed net income of $463,000, depreciation expense of $57,000, and a gain on disposal of equipment of $16,000. On Poeltl's 2023 statement of cash flows, how much is Net Cash Provided by Operating Activities?
The following information is available from the annualreport of Frixell, Inc.: Currentliabilities . . . . $300,000Operatingincome . . . . . 240,000Net income . . . . 80,000 Currentassets . . . . $ 480,000Average totalassets . . . . 2,000,000Average totalequity . . . . 800,000Which of the following statements are correct? (More thanone statement may be correct.)a. The return on equity exceeds the return on assets.b. The current ratio is 0.625 to 1.