Planter Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sorden Company's net assets on January1, 20X2. On that date, the fair value of the bonds issued by Planter was $627,000. The following balance sheet data were reported bySorden:Balance Sheet ItemAssetsCash and ReceivablesInventoryLandPlant and EquipmentLess: Accumulated DepreciationGoodwillTotal AssetsLiabilities and EquitiesAccounts PayableCommon StockAdditional Paid-In CapitalRetained EarningsTotal Liabilities and EquitiesHistoricalCost$ 56,000114,00064,000414,000(154,000)12,000$ 506,000$ 49,00084,00057,000316,000$ 506,000Fair Value$ 48,000182,00092,000290,000$ 612,000$ 49,000Required:Prepare the journal entry that Planter recorded at the time of exchange.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Cash and Recievables $ 48,000Inventory $ 1,82,000Land $ 92,000Plant and…

Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sord- On that date, the fair value of the bonds issued by Planter was $627,000. The following ba Balance Sheet Item and Receivables ory and Equipment Accumulated Depreciation _1 assets ties and Equities Historical Cost $/56,000 114,000 64,000 Fair Value $ 48,000 182,000 92,000 290,000 414,000 (154,000) 12,000 $ 506,000 $ 612,000

Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sord- On that date, the fair value of the bonds issued by Planter was $627,000. The following ba Balance Sheet Item and Receivables ory and Equipment Accumulated Depreciation _1 assets ties and Equities Historical Cost $/56,000 114,000 64,000 Fair Value $ 48,000 182,000 92,000 290,000 414,000 (154,000) 12,000 $ 506,000 $ 612,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On August 1, 20x1, German Corp. acquired all the identifiable assets and assumed the liabilities of Marasigan Corp. by paying cash of P6,000,00O. Marasigan Corp assets and liabilities have a book values of P7,000,000 and P2,200,000, respectively. The book value of assets and liabilities of Marasigan Corp. is equal to its fair value, except for inventory which is overvalued by P50,000; undervalued building of P400,000; and undervalued accounts payable of P20,000. German Corp. also paid general and administrative cost of P5,000; finder's fee of P6,000 and accountants fee of P25,00O. What is the total amount of goodwill after business combination?
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On October 1, Dennis Company purchased ₱200,000 face value, 12% bonds at 98 plus accrued interestand brokerage fees and classified them as amortized cost assets. Interest is paid semiannually on January1 and July 1. Brokerage fees for this transaction were ₱700. At what amount should this acquisition ofbonds be recorded?
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