Home » Accounting Class Homework Help » Here are the trial balances for the Pressure Co. and the Solution…
| Here are the trial balances for the Pressure Co. and the Solution Co. just before the books were closed on December 31, 2022. | | | |
| Fair market values for selected Solution Co. accounts are shown. | | | | | |
| | | | | | | |
| | Pressure Trial Balance | Solution Trial Balance | Solution Fair Market Values | | | |
| Current assets | | 170,000 | 75,000 | 85,000 | | | |
| Noncurrent assets (net) | | 255,000 | 95,000 | 130,000 | | | |
| Liabilities | | (65,000) | (45,000) | (45,000) | | | |
| Common Stock (Par) | $25 | (300,000) | | | | | |
| Common Stock (Par) | $50 | | (60,000) | | | | |
| Addional paid-in capital | | (10,000) | (20,000) | | | | |
| Retained earnings 1/1/19 | | (60,000) | (25,000) | | | | |
| Revenues | | (110,000) | (90,000) | | | | |
| Expenses | | 120,000 | 70,000 | | | | |
| | | | | | | |
| On December 31, 2022, Pressure Co. purchased 100% of Solution Company’s stock by issuing | | 4,500 | shares of its own |
| stock and paying | $100,000 | cash. On that date, market value of Pressure Company’s stock was | | $36 | per share. |
| There were no combination costs or stock issuance costs. | | | | | |
| Solution Co. was dissolved immediately after the take over and no longer existed independently. | | | | |
| Make all necessary journal entries in Pressure Company’s records to recognize this acquisition. | | |
Excellent Grades Guaranteed! (A+ or B Minimum)