Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Сompany Book Values Book Values Fair Values 12/31 193,250 228,000 602,500 765,000 765,000 224,000 (350,000) (119,000) (995,000) (660,000) Sol Company 12/31 72,900 S 369,000 190,000 195,000 271,000 216,000 (138,000) (47,500) (552,500) 12/31 Cash 72,900 369,000 242, 200 166, 200 340,000 249,900 (138,000) (47,500) (552,500) 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 (70,000) (522,500) (1,841,250) 980, 000 (210,000) (90,000) (251,000) (352,900) 328,000 Expenses Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $108,000 in cash and issuing 17,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $24,300 as well as $10,300 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Amounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Сompany Book Values Book Values Fair Values 12/31 193,250 228,000 602,500 765,000 765,000 224,000 (350,000) (119,000) (995,000) (660,000) Sol Company 12/31 72,900 S 369,000 190,000 195,000 271,000 216,000 (138,000) (47,500) (552,500) 12/31 Cash 72,900 369,000 242, 200 166, 200 340,000 249,900 (138,000) (47,500) (552,500) 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 (70,000) (522,500) (1,841,250) 980, 000 (210,000) (90,000) (251,000) (352,900) 328,000 Expenses Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $108,000 in cash and issuing 17,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $24,300 as well as $10,300 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Amounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values
for Sol Company accounts.
Padre
Company
Sol Company
Book Values Book Values Fair Values
12/31
72,900 $
369,000
190,000
195,000
271,000
216,000
(138,000)
(47,500)
(552,500)
12/31
72,900
369,000
242, 200
166, 200
340,000
249,900
(138,000)
(47,500)
(552,500)
12/31
Cash
193, 250
228,000
602, 500
765,000
765,000
224,000
(350,000)
(119,000)
(995,000)
(660,000)
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
(70,000)
(522, 500)
(1,041, 250)
980,000
(210,000)
(90,000)
(251,000)
(352,900)
328,000
Revenues
Expenses
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $108,000 in cash and issuing 17,000 shares of its own common
stock with a fair value of $40 per share. Padre paid legal and accounting fees of $24,300 as well as $10,300 in stock issuance costs.
Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all
amounts as positive values.)
Accounts
Amounts
Inventory
Land
Buildings and equipment
Franchise agreements
Goodwill
Revenues
Additional paid-in capital
Expenses
Retained earnings, 1/1
Retained earnings, 12/31
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