Gaga and bieber companies have the following balance sheets on january 1, 2016
Problem 2:Â
 Gaga and bieber companies have the following balance sheets on january 1, 2016
Gagabieber
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Cash 10,000,000 500,000
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A/r 5,000,000 200,000
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Equipment 10,000,000 1,000,000
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A/d equipment 1,000,000 100,000
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Land 1,000,000 200,000
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Total assets 25,000,000 1,800,000
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Note payable 5,000,000 800,000
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Common stock 10,000,000 600,000
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Retained earnings 10,000,000 400,000
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On january 2nd gaga acquired all of the outstanding stock of bieber company from bieber’s stockholders by issuing 500,000 shares of gaga stock when gaga had a market value of $5 per share. On january 2nd the fair market value of bieber’s equipment was $1,100,000 and the fair market value of bieber’s land was $50,000. Bieber will continue to exist after this acquisition.Â
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Required:Â
Make the journal entry gaga makes when it acquires all of the stock of bieber by issuing its 500,000 sharesÂ
Make the journal entry bieber makes when its stockholders sell their stock to gaga for gaga stock
Prepare a consolidated balance sheet on january 3rd
Prepare any necessary worksheet entries needed to construct the consolidated balance sheetÂ
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Answers
Status NEW
Posted 18 Jun 2017 08:06 AM
My Price 6.00
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file 1497775276-596930_1_1.docx preview (1777 words )
A-----------NSW-----------ER ----------- 14-----------097-----------027-----------559-----------000-----------Gag-----------a J-----------our-----------nal----------- ----------- ----------- PA-----------RTI-----------CUL-----------ARS----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- DR----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------CR ----------- Ja-----------n 2----------- sh-----------are-----------s i-----------ssu-----------ed -----------500----------- 00-----------0 @-----------5 ----------- ----------- ----------- ----------- ----------- ----------- 2 -----------500----------- 00-----------0 ----------- ----------- ----------- O-----------uts-----------tan-----------din-----------g s-----------har-----------es -----------100----------- 00-----------0 @-----------5 ----------- ----------- ----------- ----------- 50-----------0 0-----------00 ----------- ----------- ----------- C-----------ash----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 60-----------0 0-----------00 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- B-----------ieb-----------er -----------Jou-----------rna-----------l ----------- ----------- 4-----------381-----------583-----------820-----------00------------889-----------083-----------185-----------00 ----------- PA-----------RTI-----------CUL-----------ARS----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
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