Award: 2.00 points
Problem 2-23 (Algo) (LO 2-6a, 2-6b)
The following book and fair values were available for Beech Company as of June 1:
Inventory
Land
Buildings
Trademarks
Accounts payable
Common stock
Items
Additional paid-in capital
Retained earnings, 1/1
Revenues
Expenses
Book Value
$ 200,500
817,500
Fair Value
$ 167,000
1,097.250
2,175,000
2,506,500
0
860.250
(87,000)
(87,000)
(2,000,000)
0
(500,000)
0
(431,500)
0
(478,500)
0
304.000
0
Alder Company pays $3,550,000 cash and issues 22,500 shares of its $2 par value common stock (fair value of $50 per share) for all of Beech's
common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $33,600, and Alder pays $49,300
for legal fees to complete the transaction.
Required:
Prepare Alder's journal entries to record its acquisition of Beech.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
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1
2
3
Record the acquisition of Beech Company.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Debit
Credit
Clear entry
View general journal
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