Construct the balance sheet for the new corporation

Assignment Help Financial Accounting
Reference no: EM132493550

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:

Silver Enterprises

Current assets$5,800

Current liabilities$3,800

Other assets 2,200

Long-term debt 8,500

Net fixed assets 25,300

Equity 21,000

Total$33,300

Total$33,300

All Gold Mining

Current assets$2,300

Current liabilities$1,550

Other assets 710

Long-term debt 0

Net fixed assets 10,800

Equity 12,260

Total$13,810

Total$13,810

Question 1: Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $12,050; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $18,000 in new long-term dept to finance the acquisition.

Reference no: EM132493550

Questions Cloud

Determine cost of goods sold and ending inventory balance : The Downtown Appliance Center, Inc. uses a periodic inventory system and the weighted average inventory method, determine cost of goods sold
Design a two bit comparators to compare 2 numbers : 1. Design a two bit comparators to compare 2 numbers? 2. Define a decoder. Draw a decoder from its truth table?
What is ftp server and how it works : Make a report What is FTP server and how it works? Define and explain at least three open FTP Server.
What personal experiences have prepared you to work : What personal experiences have prepared you to work with underserved populations, such as participation in a federal pipeline program, community service.
Construct the balance sheet for the new corporation : Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase for accounting purposes.
Define mission of the nurse corps scholarship program : How will you contribute to the mission of the Nurse Corps Scholarship Program in providing care to underserved communities? The response must be typed.
How would your assessment technique change : How would your assessment technique change to be sure that you were competently caring for a member of this type of family unit? This may include questions.
What price would be willing to pay for a maxwell share today : Suppose instead you plan to hold the share for one year. For what price would you expect to be able to sell a Maxwell share in one year?
Relationship symbol between the two entities : You are given an E-R diagram with two entities, ORDER and CUSTOMER, as shown above, and are asked to draw the relationship between them

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd