1-38 - P1-38 Combined Balance SheetIssue 700 shares:700 x...

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Unformatted text preview: P1-38 Combined Balance SheetIssue 700 shares:700 x $300 = $210,000 100% (20,000+5,000+135,000) = $50,000Book valueFair valueDifferenceInventory30,00042,00012,000Land10,00015,0005,000P&E net120,000140,00020,000Goodwill13,00050,000Entry to record combination:Cash and Receivables20,000Inventory42,000Land15,000Plant and Equipment140,000Goodwill13,000Current Liabilities20,000Capital Stock (700 x $20)14,000Capital in Excess of Par Val (700 x ($300-20)196,000a.Purchase balance sheet:Bilge Pumpworks and Seaworthy Rope CompanyCombined Balance SheetJanuary 1, 20X3Cash and Receivables$110,000 Current Liabilities$ 100,000Inventory142,000 Capital Stock214,000Land115,000 Capital in Excess Plant and Equipment540,000of Par Value216,000Less: AccumulatedRetained Earnings240,000Depreciation(150,000)Goodwill13,000$770,000$770,000b.issue 1,100 shares1,100 x $300 = $330,000 100% (20,000+5,000+135,000) = $170,000Book valueFair valueDifferenceInventory30,00042,00012,000Land10,00015,0005,000P&E net...
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1-38 - P1-38 Combined Balance SheetIssue 700 shares:700 x...

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