Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
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Chapter 1, Problem 1.3.1E
Multiple-Choice Questions on Reported Balances [AICPA Adapted]
Select the correct answer for each of the following questions.
1. On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 20,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The
![Chapter 1, Problem 1.3.1E, Multiple-Choice Questions on Reported Balances [AICPA Adapted] Select the correct answer for each of](http://dev-ingestion-image-output.s3-website-us-east-1.amazonaws.com/9781259916977/Chapter-1/images/html_16977-1-1.3.1e_image001.jpg)
In the December 31, 20X3, combined balance sheet, additional paid-in capital should be reported at
a. $950,000.
b. $1,300,000.
c. $1,450,000.
d. $2,900,000.
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On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The stockholders’ equity section of each company’s balance sheet immediately before the combination was
Accounts Poe Saxe
Common stock $3,000,000 $1,500,000
Additional paidin capital 1,300,000 150,000
Retained earnings 2,500,000 850,000
Total $6,800,000 $2,500,000
In the December 31, year 1 consolidated balance sheet, common stock should be reported at
On December 31, 2003, Saxe Corporation was merged into Poe Corporation. In the
business combination, Poe issued 200,000 shares of its P10 par common stock, with a
market price of P18 a share, for all of Saxe's common stock. The stockholders' equity
section of each company's balance sheet immediately before the combination was (Please
refer to the attached photo.) In the December 31, 2003 consolidated balance sheet, common
stock should be reported at
Common stock
Additional paid-in capital
Retained earnings
A. P3,000,000
B. P3,500,000
C. P4,000,000
D. P5,000,000
Poe
3,000,000
1,300,000
2.500.000
P6,800,000
Saxe
P1.500,000
150,000
850,000
P2.500,000
On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The stockholders’ equity section of each company’s balance sheet immediately before the combination was
Accounts Poe Saxe
Common stock $3,000,000 $1,500,000
Additional paidin capital 1,300,000 150,000
Retained earnings 2,500,000 850,000
Total $6,800,000 $2,500,000
In the December 31, year 1 consolidated balance sheet, additional paid in capital should be reported at
Chapter 1 Solutions
Advanced Financial Accounting
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