User Account

All Pages

Prepare the journal entry on the books of Paru Company

Assignment Help Accounting Basics
Reference no: EM133088791

Question - On January 1, 2020, Paru Company purchased 100% of the common stock of Safe Company by issuing 40,000 shares of its (Paru's) $10 par value common stock with a market price of $17.50 per share. Paru incurred cash expenses of $20,000 for registering and issuing the common stock. The stockholders' equity section of the two companies' balance sheets on December 31, 2018, were:

 

Paru

Safe

Common stock, $10 par value

$350,000

$320,000

Other contributed capital

$590,000

$175,000

Retained earnings

$380,000

$205,000

Prepare the journal entry on the books of Paru Company to record the purchase of the common stock of Safe Company and related expenses.

Reference no: EM133088791

Questions Cloud

Find the best value : Imagine you have $2,000 to buy or upgrade a computer system. Research hardware and software in computer magazines and on websites such as ZD Net. Visit a comput
What part of writing is ted reviewing : Ted has written a school paper and is ensuring that all of his supporting evidence, charts, tables, and data are included to support this idea.
Determine the total expected operating expenses : If sales are projected to be 8,000 units in September, determine the total expected operating expenses
What share of the company equity must the owners offer : What share of the company's equity must the owners offer as a minimum the debtors for that they will accept the conversion of their debt into equity figures
Prepare the journal entry on the books of Paru Company : Prepare the journal entry on the books of Paru Company to record the purchase of the common stock of Safe Company and related expenses
Wheelen and hunger strategic management : 1. What skills should a person have for managing a businessThe questions above came from: unit following a differentiation strategy? Why? What should a company
What is business model : 1)Lets take a company like Revolut,what is their business model and what is their competitive advantage? Explain in detail how they could evolve or devolve as a
Analytical report-university of california : Analytical Report: University of California, Riverside (UCR)University of California, Los Angeles (UCLA)
Benefits and disadvantages of managed investment schemes : Discuss the benefits and disadvantages of managed investment schemes.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd