Arturo Company pays $4,110,000 cash and issues 20,100 shares of its $2 par value
ID: 2488281 • Letter: A
Question
Arturo Company pays $4,110,000 cash and issues 20,100 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $23,000 and Arturo pays $45,800 for legal fees to complete the transaction.
Prepare Arturo’s journal entry to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Please go through step by step how u get the calculations
The previous post the goodwill and the common stock and additonal paid in capital are incorrect. Someone please help
The following book and fair values were available for Westmont Company as of March 1.Explanation / Answer
Books of Arturo Company Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Inventory Dr. 341,250 Land Dr. 1,082,250 Buildings Dr. 2,340,000 Customers Relationship Dr. 861,000 Goodwill Dr. 584,000 To Accounts Payable 93,500 To Cash 4,110,000 To Common Stock 40,200 To Paid in Capital in excess of Par 964,800 2 Contributed Surplus Dr. 23,000 Legal Exp. Dr. 45,800 To Cash 68,800
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