Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 1.11E
Balances Reported Following Combination
Palm Corporation and Staple Company have announced terms of an exchange agreement underwhich Palm will issue 8,000 shares of its $10 par value common stock to acquire all of Staple Company’s assets. Palm shares currently are trading at $50, and Staple $5 par value shares are tradingat $18 each. Historical Cost and fair value
Required
What amount will be reported immediately following the business combination for each of the following items in the combined balance sheet?
a. Common Stock.
b. Cash and Receivables.
c. Land.
d. Buildings and Equipment (net).
e.
f. Additional Paid-In Capital.
g.
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Octane Company and Bio Company have announced terms of an
Octane Company and Bio Company have announced terms of a
exchange agreement under which Octane will issue 10,000 shares
or Its P5 par value ordinary shares to acquire all of Bio's assets.
Octane's shares are trading at p28. and Bio's P10 par value shares
are trading at P15. Historical cost and fair value statement of
financial position data on January 1, 2008, are as follows:
Octane Company
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Bio Company
Fair Value
Book
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10
P 25,000 40,000
30,000 50,000
Value
Cash
P 125,000 P 125,000
75,000
Land
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Equipment (net)
Total Assets
180,000
P 380,000
220,000 120,000 150,000
P 175,000
Ordinary Shares
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P 100,000
P 150,000
bloa 60,000
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odd 6 be
Retained
earnings
Total
000
170,000
P 380,000
55,000
P 175,000
.000,011
4) Başed on the information provided, what amount will be reported
for Ordinary Share in the combined company's statement of
financial position immediately…
On April 1, 2024, Sunland Company purchased 44,800 common shares in Ecotown Ltd. for $13 per share. Management has designated
the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on
December 31.
Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit
entries.)
Date
Account Titles
く
Debit
Credit
Following are the non-strategic investment transactions of Corona Inc.:
2023
Jan. 1 Purchased for $93,059 an 9.5%, $88,000 bond that matures in 22 years from Hanna Corporation when the market interest rate
was 8.9%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually
beginning June 30, 2023. The acquisition was made with intention to hold to maturity.
June 30 Received interest on the Hanna bond.
July
1 Paid $128,591 for a Trust Inc. bond with a par value of $133,000 and a seventeen-years term. The bond pays interest
quarterly beginning September 30, 2023, at the annual rate of 9.3%; the market interest rate on the date of purchase was
9.7%. There was a $50 transaction fee included in the above-noted payment amount.
Sept. 30 Received interest on the Trust bond.
Dec. 31 Received interest on the Hanna and Trust bonds.
31 The fair values of the bonds on this date equalled the fair values.
Required:
1. For each of the bond investments,…
Chapter 1 Solutions
Advanced Financial Accounting
Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3QCh. 1 - Prob. 1.4QCh. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Within the measurement period following a business...Ch. 1 - Prob. 1.16QCh. 1 - Prob. 1.1CCh. 1 - Prob. 1.2CCh. 1 - Prob. 1.3CCh. 1 - Prob. 1.4CCh. 1 - Risks Associated with Acquisitions Not all...Ch. 1 - Prob. 1.6CCh. 1 - Prob. 1.1.1ECh. 1 - Prob. 1.1.2ECh. 1 - Prob. 1.1.3ECh. 1 - Multiple-Choice Questions on Complex Organizations...Ch. 1 - Prob. 1.1.5ECh. 1 - Prob. 1.2.1ECh. 1 - Prob. 1.2.2ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Prob. 1.2.4ECh. 1 - Multiple-Choice Questions on Recording Business...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Multiple-Choice Questions on Reported Balances...Ch. 1 - Prob. 1.3.3ECh. 1 - Prob. 1.3.4ECh. 1 - Prob. 1.4.1ECh. 1 - Prob. 1.4.2ECh. 1 - Prob. 1.4.3ECh. 1 - Multiple-Choice Questions Involving Account...Ch. 1 - Prob. 1.4.5ECh. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Prob. 1.7ECh. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Balances Reported Following Combination Palm...Ch. 1 - Goodwill Recognition Spur Corporation reported the...Ch. 1 - Acquisition Using Debentures Planter Corporation...Ch. 1 - Bargain Purchase Using the data resented in E1-13,...Ch. 1 - Prob. 1.15ECh. 1 - Prob. 1.16ECh. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.22ECh. 1 - Prob. 1.23ECh. 1 - Prob. 1.24PCh. 1 - Prob. 1.25PCh. 1 - Prob. 1.26PCh. 1 - Acquisition in Multiple Steps Peal Corporation...Ch. 1 - Prob. 1.28PCh. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Prob. 1.31PCh. 1 - Computation of Account Balances Saspro Division is...Ch. 1 - Prob. 1.33PCh. 1 - Prob. 1.34PCh. 1 - Prob. 1.35PCh. 1 - Business Combination Following are the balance...Ch. 1 - Prob. 1.37PCh. 1 - Prob. 1.38PCh. 1 - Prob. 1.39PCh. 1 - Prob. 1.40P
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