My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
Following are preacquisition financial balances for Padre Company and Sol Company as of December 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
Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
584,750
$
84,100
$
84,100
Receivables
290,250
392,000
392,000
Inventory
535,000
249,000
303,400
Land
647,500
200,000
177,500
Building and equipment (net)
645,000
237,000
304,600
Franchise agreements
267,000
174,000
210,100
Accounts payable
(372,000)
(141,000)
(141,000)
Accrued expenses
(133,000)
(38,500)
(38,500)
Longterm liabilities
(1,082,500)
(567,500)
(567,500)
Common stock—$20 par value
(660,000)
Common stock—$5 par value
(210,000)
Additional paid–in capital
(70,000)
(90,000)
Retained earnings, 1/1
(592,500)
(267,000)
Revenues
(1,051,500)
(373,100)
Expenses
992,000
351,000
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sol’s outstanding stock by paying
$349,000 in cash and issuing 11,400 shares of its own common stock
with a fair value of $40 per share. Padre paid legal and accounting
fees of $23,400 as well as $12,800 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.)
Worksheet Amounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31
