Sunday had the following Balance Sheet on the date of acquisition: Sunday Company Balance Sheet January 1, 2018 Assets (S) Liab Accounts Receivable Depreciable Fixed Assets Land 90,000 Accounts Payable 200,000 Bonds Payable 50,000 Discount on Bonds Pay 10,000 Common Stock ($10 pa Retained Earnings Goodwill Total Assets 350,000 Total Liabilities & Eq
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- The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…The balance sheet of Palma Enterprises and Selda Company at December 31, 2016 are summarized below:Accounts Palma SeldaAssets P5,000,000 P2,000,000Liabilities 1,500,000 500,000Capital stock, P40 par 2,500,000Capital stock, P25 par 1,000,000Retained earnings 1,000,000 500,000At the date of acquisition, Selda’s net assets are understated while its liabilities are fairly valued.On January 1, 2017, Palma purchased 80% of Selda Company’s outstanding shares for P2,000,000, when the fair value of Selda’s net assets was P2,200,000. Palma issued 10,000 previously unissued shares in…On 30 June 2020 Pink Ltd acquired all assets (except for cash) and assumed all liabilities (except for debentures) of Purple Ltd. At this date, the carrying amounts of assets and liabilities of Purple Ltd were at fair value and consisted of: $15,000 32,000 40,000 Cash Accounts payable $9,000 Accounts receivable Debentures (10%) Share capital ($2 shares) Retained earnings 40,000 Inventory 110,000 Shares in listed companies 90,000 48,000 Motor Vehicle 45,000 Accumulated depreciation (15,000) In exchange for these net assets, Pink Ltd agreed to: issue two (2) Pink Ltd shares for every five (5) shares in Purple Ltd. On 30 June 2020 Pink Ltd shares were valued at $5.50 provide sufficient additional cash in order for Purple Ltd to pay out the debentures (including interest) and liquidation costs of $3,500. Required: Prepare an acquisition analysis for Pink Ltd's acquisition of Purple Ltd. wwww
- On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 XYZ, Inc. 10,000 АВССо. Cash 20,000 Accounts receivable 60,000 24,000 80,000 150,000 46,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 400,000 100,000 (40,000) 670,000 (20,000) 160,000 Accounts payable Bonds payable Share capital 40,000 12,000 60,000 340,000 100,000 Share premium 130,000 Retained earnings Total liabilities and equity 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. amounts values increment Cash 10,000 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment Accumulated depreciation Accounts payable Net assets…You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.? Acquisition of Target Co. by Acquirer Ltd. Target Share Price ($/sh.) $85.40 Acquisition Premium 15% Diluted Shares Outstanding (MM) 670 Target Total Debt Target Cash and Cash Equivalents % Debt Financing % Equity Financing Equity Financing Fees Debt Financing Fees Other Transaction Costs $3,562 $5,147 40% 60% 4.0% 1.5% $800On January 1, 2019, GRANGER Co. acquired 80% interest in HISTORIA, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of GRANGER Co. and HISTORIA, Inc. immediately after the acquisition are shown below: Jan. 1, 2019 GRANGER Co. HISTORIA, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 Inventory 80,000 46,000 Investment in subsidiary 150,000 Equipment 400,000 100,000 Accumulated depreciation (40,000) (20,000) Total assets 670,000 160,000 Accounts payable 40,000 12,000 Bonds payable 60,000 - Share capital 340,000 100,000 Share premium 130,000 - Retained earnings 100,000 48,000 Total liabilities and equity 670,000 160,000 On January 1, 2019, the fair value of the assets and liabilities of HISTORIA, Inc. were determined by appraisal, as follows: HISTORIA,…
- On January 1, 2016, Prima Company issued 1,500 of its $20 par value common shares with a fair value of $50 per share in exchange for 2,000 outstanding common shares of Swatch Company in a purchase transaction. Registration costs amounted to $1,700 paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Prima Swatch Cash $ 73,000 $13,000 Accounts Receivable (net) 95,000 19,000 Inventory 58,000 25,000 Plant and Equipment (net) 95,000 43,000 Land 26,000 20,000 Total Assets $ 347,000 $ 120,000 Accounts Payable $ 66,000 16,000 Notes Payable 82,000 21,000 Common Stock, $20 par value 100,000 40,000 Other Contributed Capital 60,000 24,000 Retained Earnings 39,000 19,000 Total Liabilities and Equities…e of cents Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders' equity consisting of common stock, $200,000; other com $160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows: Price $ 109,000 $ Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Score 78,000 94,000 -0- 166,000 75,000 309,000 158,000 450,000 -0- 940,000 420,000 160,000 70,000 70,000 50,000 822,000 242,000 250,500 124,000 Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Notes Payable Common Stock $3,351,500 $1,236,000 $ 132,000 $ 46,000 300,000 120,000 500,000 200,000 260,000 160,000 Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits 687,000 1,420,000 52,500 $3.351,500 $1,236,000 210,000 500,000 -0- Price…The following balances as at December 31. 2019 were exctracted from the trial balance of Candlelight Company Limited: DETAILS DR Promises a00,000 10% Mortgage Retained eaminge 400,000 620,000 Goodw General reserves Ordinary shares e2 10% Preference sharessos0 200,000 S5,000 400000 200,000 Share premium 55,000 Motor vehide 750,000 Provision for depreciation: Motor vehice 150,000 10N Debenture 350,000 Mortgage interest Debenture interest Cost of sales Closing stock 20.000 15.000 750,000 90,000 Insurance 30,000 Wages&salaries 60.000 Interm ordinary share dividend 32.000 Bank 53.000 Commission received 23,000 Provided that you have been told that the net loss after tax for the year ended December 31, 2019 is $450,000, transter to general reserves is $55.000. and preference shore dividend is to be accounted for in full, how much is the total retained eamingr at the end of the year? Select one a. $63000 b. 13245.000) C. ($277.000) a. $995.000