COMPREHENSIVE
On 7/1/06, PBM Company acquired 100% of the outstanding common stock of Sapple Company by issuing 6,000 shares of its $10 par value common stock (which was trading at $70 per share on that date). In addition, PBM incurred direct costs of $90,000 relating to the acquisition, $40,000 of which was for the registration of the shares issued with the SEC. Selected relevant data follows:
Required:
a. Prepare the entry to record the business combination on 7/1/06.
b. Complete the PBM Company and Sapple Company columns of the consolidation worksheet on the following page.
c. Prepare the consolidation entries at 12/31/06.
d. Post the consolidation entries in Requirement c to the following consolidation worksheet, and complete the worksheet.

Question

COMPREHENSIVE
On 7/1/06, PBM Company acquired 100% of the outstanding common stock of Sapple Company by issuing 6,000 shares of its $10 par value common stock (which was trading at $70 per share on that date). In addition, PBM incurred direct costs of $90,000 relating to the acquisition, $40,000 of which was for the registration of the shares issued with the SEC. Selected relevant data follows:
  Required:
a. Prepare the entry to record the business combination on 7/1/06.
b. Complete the PBM Company and Sapple Company columns of the consolidation worksheet on the following page.
c. Prepare the consolidation entries at 12/31/06.
d. Post the consolidation entries in Requirement c to the following consolidation worksheet, and complete the worksheet.

Quizplus · Accepted Answer

The Answer of COMPREHENSIVE
On 7/1/06, PBM Company acquired 100% of the outstanding common stock of Sapple Company by issuing 6,000 shares of its $10 par value common stock (which was trading at $70 per share on that date). In addition, PBM incurred direct costs of $90,000 relating to the acquisition, $40,000 of which was for the registration of the shares issued with the SEC. Selected relevant data follows:
  Required:
a. Prepare the entry to record the business combination on 7/1/06.
b. Complete the PBM Company and Sapple Company columns of the consolidation worksheet on the following page.
c. Prepare the consolidation entries at 12/31/06.
d. Post the consolidation entries in Requirement c to the following consolidation worksheet, and complete the worksheet.

COMPREHENSIVE On 7/1/06, PBM Company Acquired 100% of the Outstanding Common