Advanced Financial Accounting 12th Edition by Theodore Christensen solution manual

 

 
Capital Stock [$200,000 + ($20 x 1,100 shares)]
$    222,000

 
Capital in Excess of Par Value
[$20,000 + ($300 - $20) x 1,100 shares]
328,000

 
Retained Earnings
      240,000

 
 
$    790,000

 
 
 

 
 
(2)  Stockholders' equity with 1,800 shares issued:
 

 
 
 

 
Capital Stock [$200,000 + ($20 x 1,800 shares)]
$    236,000

 
Capital in Excess of Par Value
[$20,000 + ($300 - $20) x 1,800 shares]
524,000

 
Retained Earnings
     240,000

 
 
$1,000,000

 
 
 

 
 
(3)  Stockholders' equity with 3,000 shares issued:
 

 
 
 

 
Capital Stock [$200,000 + ($20 x 3,000 shares)]
$   260,000

 
Capital in Excess of Par Value
[$20,000 + ($300 - $20) x 3,000 shares]
860,000

 
Retained Earnings
     240,000

 
 
$1,360,000

 
 
 

 

P1-38  Incomplete Data Problem
 
a. 5,200 = ($126,000 - $100,000)/$5
 
b. $208,000 = ($126,000 + $247,000) - ($100,000 + $65,000)
 
c. $46,000 = $96,000 - $50,000
 
d. $130,000 = ($50,000 + $88,000 + $96,000 + $430,000 - $46,000 - 
        $220,000 - $6,000) - ($40,000 + $60,000 + $50,000 + $300,000 -
        $32,000 - $150,000 - $6,000)
 
e. $78,000 = $208,000 - $130,000
 
f. $97,000 (as reported by Plend Corporation)
 
g. $13,000 = ($430,000 - $300,000)/10 years
 
 
P1-39  Incomplete Data Following Purchase
 
a. 14,000 = $70,000/$5
 
b. $8.00 = ($70,000 + $42,000)/14,000
 
c. 7,000 = ($117,000 - $96,000)/$3
 
d. $24,000 = $65,000 + $15,000 - $56,000
 
e. $364,000 = ($117,000 + $553,000 + $24,000) – ($96,000 + $234,000)
 
f. $110,000 = $320,000 - $210,000
 
g. $306,000 = ($15,000 + $30,000 + $110,000 + $293,000) -
         ($22,000 + $120,000)
 
h. $58,000 = $364,000 - $306,000
 
 

P1-40  Comprehensive Business Combination Problem
 
a. Journal entries on the books of Pintime Industries to record the combination:
 
 
Merger Expense
135,000
 

 
     Cash
 
135,000

 
 
 
 

 
Deferred Stock Issue Costs
42,000
 

 
     Cash
 
42,000

 
 
 
 

 
Cash
28,000
 

 
Accounts Receivable
251,500
 

 
Inventory
395,000
 

 
Long-Term Investments
175,000
 

 
Land
100,000
 

 
Rolling Stock
63,000
 

 
Plant and Equipment
2,500,000
 

 
Patents
500,000
 

 
Special Licenses
100,000
 

 
Discount on Equipment Trust Notes
5,000
 

 
Discount on Debentures
50,000
 

 
Goodwill
109,700
 

 
     Current Payables
 
137,200

 
     Mortgages Payable
 
500,000

 
     Premium on Mortgages Payable
 
20,000

 
     Equipment Trust Notes
 
100,000

 
     Debentures Payable
 
1,000,000

 
     Common Stock
 
180,000

 
     Additional Paid-In Capital — Common
 
2,298,000

 
     Deferred Stock Issue Costs
 
42,000

 
 
    Computation of goodwill