On July 1, 2014, Piper Corporation issued 23,000 shares of its own $2 par value common stock for 40,000 shares of the outstanding stock of Sector Inc. in an acquisition. Piper common stock at July 1, 2014 was selling at $16 per share. Just before the business combination, balance sheet information of the two corporations was as follows:
Required:
1. Prepare the journal entry on Piper Corporation's books to account for the investment in Sector Inc.
2. Prepare a consolidated balance sheet for Piper Corporation and Subsidiary immediately after the business combination.

Question

On July 1, 2014, Piper Corporation issued 23,000 shares of its own $2 par value common stock for 40,000 shares of the outstanding stock of Sector Inc. in an acquisition. Piper common stock at July 1, 2014 was selling at $16 per share. Just before the business combination, balance sheet information of the two corporations was as follows:
  Required:
1. Prepare the journal entry on Piper Corporation's books to account for the investment in Sector Inc.
2. Prepare a consolidated balance sheet for Piper Corporation and Subsidiary immediately after the business combination.

Quizplus · Accepted Answer

The Answer of On July 1, 2014, Piper Corporation issued 23,000 shares of its own $2 par value common stock for 40,000 shares of the outstanding stock of Sector Inc. in an acquisition. Piper common stock at July 1, 2014 was selling at $16 per share. Just before the business combination, balance sheet information of the two corporations was as follows:
  Required:
1. Prepare the journal entry on Piper Corporation's books to account for the investment in Sector Inc.
2. Prepare a consolidated balance sheet for Piper Corporation and Subsidiary immediately after the business combination.

On July 1, 2014, Piper Corporation Issued 23,000 Shares of Its