PROBLEM 3: FOR CLASSROOM DISCUSSION Share-for-share exchanges 1. Frown Co. issued shares in exchange for all the outstanding shares of Long Co. Frown's shares have par value of P20 per share and fair value per value of P100. On acquisition date, Long's net identifiable assets have fair value of P4,000,000. Frown recognized goodwill of P200,000 from the business combination. How many shares did Frown issue on the business combination?

PROBLEM 3: FOR CLASSROOM DISCUSSION Share-for-share exchanges 1. Frown Co. issued shares in exchange for all the outstanding shares of Long Co. Frown's shares have par value of P20 per share and fair value per value of P100. On acquisition date, Long's net identifiable assets have fair value of P4,000,000. Frown recognized goodwill of P200,000 from the business combination. How many shares did Frown issue on the business combination?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 10MCQ

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Q Type your answer lanks and submit X₂ X² 2. Company issues (sells) 1,000 Class A Ordinary shares and 1,000 Class B Preferred shares for total proceeds of $24,000. Situation B-market price of ordinary shares is $15 per share and market price of preferred shares is unknown as it is a new issue. Company elects to use the residual value method to value. In the journal entry to record this acquisition, what would I credit for ordinary shares? For preferred shares? Please found your final answer to the nearest dollar. Do not round intermediary answers. Do not use $ signs in your final answer. Ordinary/Common Shares - Type your answer here Preferred Shares - Type your answer here Please round your final answer to the nearest dollar. Do not round intermediary answers. Do not use $ signs in your final answer. MacBook Air DII DD K F12 F9 F10 F11 Fó F8 % 5 6 T 87 & Y G H TEN B U J 8 M - ( 9 K O < ) O L P | 1 V : 1 { + 11 [ 24 ? 11 . del-
World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises is offering R65 per share for Intous ltd. You are given the following information World Enterprises Intous Ltd Net Income R50 R10 Shares outstanding 5000 2000 Earnings per share R10 R5 Market price per share R150 Price earnings ratio R15 a. Calculate the number of shares to be issued by Intous Ltd: b. Calculate combined earnings per share of both World Enterprise and Intous Ltd c. Calculate price earnings ratio (P/E ratio) paid (Hint: use the R65 to calculate the P/E ratio) d. Compare the current and paid P / E ratios
Problem 7 Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares have a quoted price of P64 per share on the date of purchase of the land. Journal entry to record the transaction: What is the rule in solving the problem?
Consider the following premerger information about Firm X and Firm Y: 222 Total earnings Shares outstanding Per-share values: Market Book Firm X $92,000 49,000 Assets from X Assets from Y Goodwill Total Assets XY LA GA Firm Y $20,500 14,000 49 $ 18 $ 20 7 zursurch of M www.am entrat human pa grawe anakmuom 2 Hoe o Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $146,000. On that date, the fair value of the noncontrolling interest was $36,500, and Slice reported retained earnings of $44,000 and had $92,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Debit $ Products Company Debit $ 82,000 109,000 82,000 164,000 Item Credit Credit 88,000 277,000 82,000 507,000 176, 200 119,000 20,000 10,000 44,000 Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared 44,000 10,000 6,000 22,000 $ 193,000 Accumulated Depreciation Accounts Payable Notes Payable Common Stock 40,000 266,920 285,000 299,000 207,000 32,280 $ 70,000 15,000 155,000 92,000 82,000 105,000 Retained Earnings Sales Income…
In the recent Acquisition of A Bank and Building Society Limited, the following Information is available DETAILS ECHO BANK BUILDING SOCIETY Earnings Sh.40.000,000 Sh.10,000,000 Number of shares 10,000.000 4,000,000 Earnings per share Sh. 4 Sh.2.50 Price per share Sh. 60 Sh.30 the Building Society agreed to the market exchange ratio of 0.667 At what price did the Bank offer to purchase shares of the BS? How many additional shares did the Bank Issue in this transaction What was the effect of these additional shares on Earnings Per share of the Bank?
Memorandum method vs. Journal entry method Horizon Co. was incorporated in 20x1. The following were the transactions: ur 6 Received authorization from the SEC to issue share capital of P3,000,0000 divided into 600,000 shares with par value per share of P5. lan. 6 25% of the authorized capitalization was subscribed at par value and 25% of the total subscription was paid. Lat. 31 Received full payment for 120,000 subscribed shares and issued the related share certificates. Teh. 14 Received cash subscription for 60,000 shares at P20 per share. Share issuance costs of P12,000 were incurred. Feb. 28 Received subscription for 150,000 shares at P25 per share. Requirements: Provide the journal entries under (1) memorandum method and (2) journal entry method. h Prepare the share capital portion of Horizon Co.'s statement of financial position as of February 28, 20x1.
please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.
/ilm/takeAssignment/takeAssignmentMain.do?invoker3&takeAssiIgnmentSessionLocator=&lnprogress=rase Maps Bb Welcome, Audriann... Exercise 7-21 (LO. 2) On May 9, 2018, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as 5 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale. If an amount is zero, enter "0". As a result of the sale, Calvin has: Ordinary loss: 50,000 Short-term capital loss: Long-term capital loss: Feedback cheek M.Werk rnholdorc receive canital gain or loss treatment upon the sale or exchange of stock.
O d. Preference Shares Given the following data; TOTAL PURCHASES OMR 150000 CASH PURCHASES OMR 45000 PURCHASE RETURN OMR 5000 OPENING CREDITORS OMR 30000 CLOSING CREDITORS OMR 20000 What will be the amount of Net Credit Purchase? O a. OMR 100000 on O b. OMR 150000 O c. OMR 45000 O d. OMR 105000 e here to search 耳 Pa enovo
Case 2: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued 12,000 shares as consideration for a 60% interest in Frank. Richard’s shares currently sell P55 per share in the market, while Frank’s shares are quoted at P225 per share. Richard, Inc. elected to measure NCI at “proportionate share”. 1.How much is the goodwill (gain on bargain purchase) on the business combination?a. P (50,000.00)b. P 50,000.00c. P 55,000.00d. P 60,000.002.How much is the total Goodwill in the books of Richard, Inc. after the business combination?a. P 140,000.00b. P 190,000.00c. P 300,000.00d. P (300,000.00)3.How much is the total Share Capital in the books of Richard, Inc. after the business combination?a. P 600,000.00b. P 660,000.00c. P 620,000.00d. P 640,000.00
purchased for P120 per Problem 16-14 (AICPA trading. These 50,000 shares were rights to the investor. and two of these rights. Each share had a market value of P130 and each right had market value of P20 on the date of issue. a What total cost should be'recorded for the new shares that are acquired by exercising the rights? a. 2,250,000 b. 3,250,000 c. 3,050,000 d. 5,500,000