Roque, Princesa S.

4BSA3

Problem No.1

1. 750,000

2. (1,285,000)

3. 2,035,000

4. 7,760,000

5. 700,000

6. 467,400

7. 338,700

8.128,700

9.

January 1, 2021

Accounts Receivable 34,700

Inventory 39,000

Land 130,000

Buildings 70,000

Plant and Equipment 65,000

Goodwill 128,700

Cash 248,000

Consideration Payable 100,000

Common Stock 20,000

Share Premium 44,000

 Land 50,000

Patent 5,000

Estimated Liability for Contingent 400

Consideration

Patent 1,000

Gain on remeasurement of patent 1,000

Land 15,000

Gain on sale of land 15,000

Acquisition-related expenses 97,000

Cash 97,000

Paid-in capital in excess of par 18,000

Cash 18,000

General expenses 50,000

Cash 50,000

December 31, 2021

Consideration Payable 100,000

Interest Expense 10,000

Cash 110,000

Estimated Liability for Contingent Consideration 400

Gain on Contingent Consideration 400

10.

Paul Company

Balance Sheet

January 1, 2021

Assets

Cash 110,000

Accounts receivable, net 59,700

Inventory 74,500

Land 235,000

Building 130,000

Property, plant and equipment 130,000

Patent 6,000

Goodwill 153,700

Total Assets 898,900

Liabilities and Stockholder’s Equity

Accounts payable 56,000

Mortgage loan 50,000

Bonds payable 100,000

Consideration payable 100,000

Estimated liability for contingent 400

consideration

Total Liabilities 306,400

Stockholder’s Equity:

Common stock 620,000

Paid-in capital excess of par 54,500

Retained earnings (82,000)

Total Stockholder’s Equity 592,500

Total Liabilities and Stockholder’s Equity 898,900

Paul Company

Balance Sheet

December 31, 2021

Assets

Cash 0

Accounts receivable, net 59,700

Inventory 74,500

Land 235,000

Building 130,000

Property, plant and equipment 130,000

Patent 6,000

Goodwill 153,700

Total Assets 788,900

Liabilities and Stockholder’s Equity

Accounts payable 56,000

Mortgage loan 50,000

Bonds payable 100,000

Total Liabilities 206,000

Stockholder’s Equity:
Common stock 620,000

Paid-in capital excess of par 54,500

Retained earnings (91,600)

Total Stockholder’s Equity 582,900

Total Liabilities and Stockholder’s Equity 788,900