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On July 1,2011,Piper Corporation Issued 23,000 Shares of Its Own

Question 38

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On July 1,2011,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 1,2011 was selling at $16 per share.Just before the business combination,balance sheet information of the two corporations was as follows:
On July 1,2011,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 1,2011 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. 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.

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