I-09.05 Problem

I-09.05 Problem - $ Salaries payable 125,400 363,175 $...

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I-09.05 Princeton Corporation purchased all of the stock of Stanford Corporation on July 1. Princeton paid $3,000,000 for this investment. Stanford's buildings had a fair value of $1,550,000. All other assets and liabilities of Stanford had fair values that were equivalent to their recorded amounts. Any excess purchase differential is attributable to goodwill. The separate balance sheets of Princeton and Stanford follow. Prepare the consolidated balance sheet that would be reported to Princeton's shareholders. PRINCETON CORPORATION Balance Sheet July 1, 20X5 Assets Current assets Cash 565,000 $ Accounts receivable 233,789 Inventories 255,909 1,054,698 $ Long-term Investments Investment in Stanford 3,000,000 Land 378,790 $ Building (net of accumulated depreciation) 861,919 Equipment (net of accumulated depreciation) 476,136 1,716,845 Intangible assets Patent 540,000 Total assets 6,311,543 $ Liabilities Current liabilities Accounts payable 237,775
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Unformatted text preview: $ Salaries payable 125,400 363,175 $ Long-term liabilities Loan payable 2,500,000 Total liabilities 2,863,175 $ Stockholders' equity Capital stock 2,300,000 $ Retained earnings 1,148,368 Total stockholders' equity 3,448,368 Total Liabilities and equity 6,311,543 $ I-09.05 STANFORD CORPORATION Balance Sheet July 1, 20X5 Assets Current assets Cash 34,545 $ Accounts receivable 180,800 Inventories 343,687 559,032 $ Property, plant & equipment Land 137,776 $ Building (net of accumulated depreciation) 688,099 Equipment (net of accumulated depreciation) 657,887 1,483,762 Total assets 2,042,794 $ Liabilities Current liabilities Accounts payable 118,998 $ Salaries payable 23,441 142,439 $ Long-term liabilities Loan payable 632,179 Total liabilities 774,618 $ Stockholders' equity Capital stock 800,000 $ Retained earnings 468,176 Total stockholders' equity 1,268,176 Total Liabilities and equity 2,042,794 $...
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I-09.05 Problem - $ Salaries payable 125,400 363,175 $...

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