midterm1 - 1-43a.b.Merger Expense CashDeferred Stock Issue...

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Unformatted text preview: 1-43a.b.Merger Expense CashDeferred Stock Issue Cost CashCashAcount Receivable InventoryLong Term InvestmentsLandRolling StokcPlant and EquipmentPatentsSpecial LicensesDiscount on Equipment Trust NotesDiscount on DebenturesGoodwill Current Paybles Mortages Payable Premium on Mortgages Payable Equipment Trus Notes Debentures Payable Common Stock Additional Paid in Capital - Common Deferred Stock Issue CostsComputation of goodwillValue of stock issued (14 x 180,000)Fair value of assets acquiredFair value of liabilites assumedFair value of net identifiable assets Journal entires on the books of HCC to record the combination:Investment in Bigtime Industries StockAllowance for Bad DebtsAccumulated DeprectionCurrent PayablesMortgages PayableEquipment Trust NotesDebentures Payable Discount on Debentures Payable Cash Accounts receivable Inventory Long-Term Investments Land Rolling Stock Plant & Equipment Patens Special Licences Gain on Sale of Assets and LiabilitesRecord sale of assets and LiabilitiesCommon StockAdditonal Paid in Capital - Common Stock Treasury Stock Record retirement of Treasury Stock 7,500 = $5 x 1,500 shares 4,500 = $12,000 - $7,500Common StockAdditional Paid in Capital - CommonAdditonal Paid in Capital - Retirement of PreferredRetained Earnings Investment in Bigtime Industries StockRecord retirement of HCC stock and distribution of Integrated Industries stock: 592,5000 = 600,000 - 7,500 495,500 = 500,000 - 4,500 1,410 = 220,100 + 1.189.900 135,000 135,000 42,000 42,000 28,000 251,500 395,000 175,000 100,000 63,000 2,500,000 500,000 100,000 5,000 50,000 109,700 137,200 500,000 20,000 100,000 1,000,000 180,000 2,298,000 42,000 2,520,000 4,112,500 (1,702,200) 2,410,300 109,700 2,520,000 65,000 614,000 137,200 500,000 100,000 1,000,000 40,000 28,000 258,000 381,000 150,000 55,000 130,000 2,425,000 125,000 95,800 1,189,900 7,500 4,500 12,000 592,500 495,500 22,000 1,410,000 2,520,000 2-34a.12345b. Investment in Jackson Corporation Stock Common Stock Additonal Paid in CapitalCash Investment in Jackson Corporation StockInvestment in Jackson Corporation Stock Income from Jackson CorporationIncome form Jackson Corporation Investment in Jackson Corporation StockInxcome from Jackson Corporation Investment in Jackson Corporation Stock$212,600 = $200,000 + $24,500 - $3,500 - $7,000 - $1,400 200,000 50,000 150,000 3,500 3,500 24,500 24,500 7,000 7,000 1,400 1,400 4-28 a....
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This note was uploaded on 04/10/2010 for the course ACCOUNTING 122 taught by Professor Dick during the Spring '10 term at American Academy of Art.

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midterm1 - 1-43a.b.Merger Expense CashDeferred Stock Issue...

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