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ACC12 - Week2 Assignment

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Question;Financial AccountingUsing the following information, answer the following in a Word document:P Corporation acquired 100 percent of S Company's assets on January 1, 2011, by issuing 1,250,000 shares of its $1 par common stock. The common stock issue in the acquisition had a market value of $80.80 per share. Balance sheets of both companies immediately prior to the acquisition are shown below.P CorporationBalance SheetDecember 31, 2010AssetsCash $120,000,000Accounts receivable $350,000,000Inventories $135,000,000Land $15,000,000Plant, property, and equipment $80,000,000Less: Accumulated depreciation ($42,000,000)Total assets $658,000,000Liabilities and Shareholders' EquityAccounts payable $215,000,000Notes payable $85,000,000Common stock $100,000,000Paid-in capital in excess of par $157,000,000Retained earnings $101,000,000Total liabilities and SE $658,000,000S CompanyBalance SheetDecember 31, 2010AssetsCash $50,000,000Accounts receivable $37,000,000Inventories $18,000,000Land $10,000,000Plant, property, and equipment $35,000,000Less: Accumulated depreciation ($21,000,000)Total assets $129,000,000Liabilities and Shareholders' EquityAccounts payable $32,000,000Notes payable $8,000,000Common stock $10,000,000Paid-in capital in excess of par $28,000,000Retained earnings $51,000,000Total liabilities and SE $129,000,000

 

Paper#37660 | Written in 18-Jul-2015

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