Determine pre-acquisition balance sheets of push way

Reference no: EM131792057

Question: On July 1, 2014, Push way Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company's common stock. The Push way stock issued had a market value of $500,000 on the date of the exchange. Following are the July 1, 2014, pre-acquisition balance sheets of Push way and Stroker, plus fair value information for Stroker's assets and liabilities.

Required: 1. Provide the journal entry Push way recorded for the acquisition of Stroker, assuming Push way used the acquisition method.

2. What amount will be shown on the July 1, 2014, consolidated balance sheet for the following:

a. Total assets

b. Total liabilities

c. Total equity

3. Now assume the pooling method was used to record the acquisition. Complete requirements 1 and 2. (Note to student:

Ignore the fact that the date in this problem would prohibit the use of the pooling method).

Reference no: EM131792057

Questions Cloud

Calculate the companys inventory turnover and its days sales : The following information is available for the McCartney Corporation. Calculate the company's inventory turnover and its days' sales in inventory.

Discuss your reaction or connection to the piece : Identify the reading from this week which resonated the most with you. Discuss your reaction or connection to the piece.

This industry is now receiving reduced payment : This industry is now receiving reduced payment if the entity has low quality outcome measures.

Importance of professional communications and tools : importance of professional communications and tools and techniques for enhancing the same - Guidelines for ethical use of the computers and networks

Determine pre-acquisition balance sheets of push way : On July 1, 2014, Push way Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company's common stock.

Discuss trading securities are reported at fair value : Trading securities are reported at fair value, with unrealized holding gains and losses reported as part of net income

Write a response paper about the city of augustas community : The community in which I'm writing about is the city of Augusta, Georgia; more specifically the neighborhood of Harrisburg.

Prepare income statements based on absorption costing : Question - Comparison of actual-costing method. Prepare income statements based on absorption costing for each of the two years

Determine the amount to be reported as the cost of the land : Determine the amount to be reported as the cost of the land, Westmorlan Company acquired real estate on which it planned to construct a small office building

User Account

All Pages