60
60000
400000
350000
-150000
0
200000
180000
70000
90000
520000
10000
3000
60000
10000
200000
259800
35000
12000
45000
20000
30000
14000
P1-37 Journal Entries
Journal entries to record acquisition of Light Steel net assets:
Cash
Record finder’s fee and transfer costs.
Record audit fees and stock registration fees.
Cash
Accounts Payable
Bonds Payable
Record merger with Light Steel Company.
Goodwill
Total
a.
Balance in investment account, December 31, 20X7
Cumulative earnings since acquisition
Cumulative dividends since acquisition
Proportion of stock held by True Corporation
Total Amount Debited to Investment Account
Purchase Amount
b.
c.
d.
Merger Expense
(1)
(2)
(3)
Deferred Stock Issue Costs
The fair value of net assets on January 1, 20X5 is
The value assigned to the NCI shareholders on January 1, 20X5 is
Amount assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X7.
INSTRUCTION: You are to complete the assignment using the following template. You need to fill in whatever is missing in order to complete the assignment. I have included
some
check figures for you in order to help
P1-37 USE EXCEL TEMPLATE FOR THIS Journal Entries
On January 1, 20X3, PURE Products Corporation issued 12,000 shares of its $10 par value stock to acquire the net assets of Light Steel Company. Underlying book value and fair value information for the balance sheet items of Light Steel at the time of acquisition follow:
Balance Sheet Item
Book Value Fair Value
Accounts Receivable
$100,000 100,000
Inventory (LIFO basis)
60,000 115,000
Land
50,000 70,000
Building and Equipment
Less: Accumulated Depreciation
(150,000) ——-
Total Assets
$520,000
$695,000
Accounts Payable
$10,000 $10,000
Bonds Payable
Common Stock ($5 par Value) …