Solution-Prepare arturos journal entry to record its

Prepare arturos journal entry to record its acquisition

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Reference no: EM132465988

The following book and fair values were available for Westmont Company as March 1.

Book Value		Fair Value
Inventory Land Buildings	$ 551,500 771,000 1,895,000	$ 515,250 1,050,758 2,252,000
Customer relationships	0	825,000
Accounts payable	(102,000)	(102,000)
Common stock	(2,000,000)
Additional paid-in capital	(500,000)
Retained earnings 1/1	(430,000)
Revenues	(495,500)
Expenses	310,000

Arturo Company pays $4,140,000 cash and issues 20,500 shares of its $2 par alue common stock (fair value of $50 per share) for all of Westmont'sCommon stock in a merger, after which Westmont will cease to exist as aparate entity. Stock issue costs amount to $27,600 and Arturo pays $46,900 or legal fees to complete the transaction.

Question 1: Prepare Arturo's journal entry to record its acquisition of Westmont. (If no ntry is required for a transaction/event, select "No journal ntry required" in the first account field.)

1		515,250.	.
1	kiventay.	515,250.	.
	Lana	1050,750.
	Buildings	2,252,000.	.
	Custmer relauonships.
	Good	624,000.	.
	Accounts (Yap.	.	102.000.
	Cannon stud(		41000.
	Athiltional pauclin capital.		984,000.
	Cash	.	4,140.000.
2	PitteSSINIal SOMCOS13:101911.	49900.	.
	Cash		46900.
3	kldrOonal panikn carnal	27,600..
	Cash	.	27,600
		.	27,600

Reference no: EM132465988

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Prepare arturos journal entry to record its acquisition

Reference no: EM132465988

Reference no: EM132465988

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