ACC440_TEAMB_WEEK2 - Recorded amount of stock $500,000...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Balance Sheet Item Historical Cost Fair Value Cash and Recivalbes $28,000 $28,000 Inventory $94,000 $122,000 Buildings and Equipment $600,000 $470,000 Less: Accumulated Depreciation $(240,000) Total Assets $482,000 $620,000 Accounts Payable $41,000 $41,000 Notes Payable $65,000 $63,000 Common Stock ($10 Par value) $160,000 Retained Earnings $216,000 Total Liabilies and Equities $482,000 Fair value of net assets 516000 To determine purchase price 24000 shares $22 $528,000 Fair value of stock issued $528,000 Add direct cost assets/liabilities $14,000 Total purchase price $542,000 Fair value of stock issued $528,000 minus cost of issuing securities audit fees $(21,000) listing fee $(7,000)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Recorded amount of stock $500,000 Deferred Merger Cost $14,000 Cash $14,000 Deferred Stock Issue Cost $28,000 Cash $28,000 Frost records the following on the date of the combination Cash and Receivables $28,000 Inventory $122,000 Buildings and Equipment $470,000 Goodwill $26,000 Accounts Payable $41,000 Notes Payable $63,000 Common stock $96,000 Additional Paid in Capital $404,000 Deferred Merger Cost $14,000 Defferred Stock Issue Cost $28,000 Cost of investment $542,000 fair value $516,000 goodwill $26,000 shares 24000 $4 $96,000 Recorded amount of stock $500,000 less common stock $96,000 additional paid in capital $404,000...
View Full Document

This note was uploaded on 03/22/2010 for the course ACC ACC440 taught by Professor Wormer during the Spring '08 term at University of Phoenix.

Page1 / 4

ACC440_TEAMB_WEEK2 - Recorded amount of stock $500,000...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online