ACCT 235 Ch. 2 HW - Atkins Inc Waterson Corporation Atkins...

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Atkins, Inc. & Waterson Corporation Atkins Waterson Investment entry will impact CS and APIC Common Stock 180,000 45,000 APIC 90,000 20,000 CS 180,000 Retained Earnings 300,000 110,000 CS (51,000) APIC 102,000 APIC (Atkins) 90,000 Investment Entry Total APIC 192,000 Investment 153,000 Retained Earnings remains the same. Common Stock 51,000 Answer C: 4192,000 and $300,000 APIC 102,000
Cash Received 140000 60000 60000 Cash Received 140000 60000 200000 Inventory 190000 145000 175000 Inventory 190000 145000 30000 A 365000 Patened Technology 230000 180000 200000 Investment 400000 -300000 S 0 Land 400000 200000 225000 -100000 A Building and Equipment 100000 75000 75000 Patened Technology 230000 180000 20000 A 430000 Liabilities -540000 -360000 -350000 Land 400000 200000 25000 A 625000 Common Stock -300000 -70000 Building and Equipment 100000 75000 175000 APIC -10000 -30000 Goodwill 15000 A 15000 Retained Earnings -130000 -150000 Liabilities -540000 -360000 10000 A -890000 Revenues -250000 -130000 Common Stock -350000 -70000 70000 S -350000 Expenses 170000 80000 APIC -360000 -30000 30000 S -360000 Retained Earnings -130000 -150000 200000 S -210000 Revenues -250000 Step 1: Allocation Process Allocation of Excess Inventory Expenses 170000 400000 Inventory 30000 BV Purchase 300000 Patened Technology 20000 Journal Entries 15) Goodwill 15000 Excess 100000 Land 25000 Investment 400000 16) Patened Technology 430000 Liabilities 10000 Common Stock 50000 17) Common Stock 35000 Goodwill 15000 APIC 350000 18) Retaind Earnings 210000 S Entry A Entry Common Stock 70000 Inventory 30000 APIC 30000 Patened Technology 20000 Retained Earnings 150000 Land 25000

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