Assets Liabilities and Equity $ 300,000 200,000 Current liabilities .. Bonds payable Common stock ($5 par). Accounts receivable $ 250,000 Inventory Property, plant, and equipment (net) . . 200,000 200,000 500,000 Paid-in capital in excess of par Retained earnings . . 300,000 ... Computer software 125,000 175,000 Total assets. $1,125,000 Total liabilities and equity $1,125,000
Libra Company is purchasing 100% of the outstanding stock of Genall Company for $700,000. Genall has the following balance sheet on the date of acquisition: (see attachment)
Appraisals indicate that the following fair values for the assets and liabilities should be acknowledged:
Accounts receivable . . . . . . . . . . . . . . . $300,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . 215,000
Property, plant, and equipment . . . . . . . 700,000
Computer software . . . . . . . . . . . . . . . . 130,000
Current liabilities . . . . . . . . . . . . . . . . . . 250,000
Bonds payable . . . . . . . . . . . . . . . . . . . 210,000
1. Prepare the value analysis schedule and the determination and distribution of excess schedule.
2. Prepare the elimination entries that would be made on a consolidated worksheet prepared on the date of purchase.
![Assets
Liabilities and Equity
$ 300,000
200,000
Current liabilities ..
Bonds payable
Common stock ($5 par).
Accounts receivable
$ 250,000
Inventory
Property, plant, and equipment
(net) . .
200,000
200,000
500,000
Paid-in capital in excess of par
Retained earnings . .
300,000
...
Computer software
125,000
175,000
Total assets.
$1,125,000
Total liabilities and equity
$1,125,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05eba704-705b-4dfd-b816-7e0c49b57556%2Fb46b4ca1-2a40-443b-b774-d502f4578016%2Fgbrcaca.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)