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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also include values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm Liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 Sol Company Book Values 12/31 56,700 $ 354,750 242,250 312,000 482,500 174,000 720,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290,800 (152,000) (54,500) (532,500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also include values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm Liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 Sol Company Book Values 12/31 56,700 $ 354,750 242,250 312,000 482,500 174,000 720,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290,800 (152,000) (54,500) (532,500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1WT
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Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital + Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts
Transcribed Image Text:Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital + Expenses Retained earnings, 1/1 Retained earnings, 12/31 Amounts
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm Liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 354,750 242, 250 482,500 720,000 Sol Company Book Values 12/31 56,700 $ 312,000 174,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290, 800 (152,000) (189,000) (54,500) (54,500) (1,132,500) (532,500) (532,500) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)
Transcribed Image Text:Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm Liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 354,750 242, 250 482,500 720,000 Sol Company Book Values 12/31 56,700 $ 312,000 174,000 194,000 837,500 332,000 242,000 252,000 (352,000) (152,000) Fair Values (210,000) (70,000) (90,000) (422,500) (260,000) (1,000,000) (354,700) 947,000 333,000 12/31 56,700 312,000 229,900 171,200 395,300 290, 800 (152,000) (189,000) (54,500) (54,500) (1,132,500) (532,500) (532,500) (660,000) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 in stock issuance costs. Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)
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