Essay
On January 2,2013 Piron Corporation issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Seana Corporation's outstanding common shares.Piron paid $15,000 to register and issue shares.Piron also paid $20,000 for the direct combination costs of the accountants.The fair value and book value of Seana's identifiable assets and liabilities were the same.Summarized balance sheet information for both companies just before the acquisition on January 2,2013 is as follows: 
Required:
1.Prepare Piron's general journal entry for the acquisition of Seana,assuming that Seana survives as a separate legal entity.
2.Prepare Piron's general journal entry for the acquisition of Seana,assuming that Seana will dissolve as a separate legal entity.
Correct Answer:
Verified
1.General journal entry recorded by Piro...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q1: Picasso Co.issued 5,000 shares of its $1
Q3: On December 31,2013,Peris Company acquired Shanta Company's
Q4: Bigga Corporation purchased the net assets of
Q5: Saveed Corporation purchased the net assets of
Q6: In reference to international accounting for goodwill,U.S.companies
Q10: On January 2,2013,Pilates Inc.paid $900,000 for all
Q12: According to FASB Statement 141R,which one of
Q30: Pitch Co.paid $50,000 in fees to its
Q34: Use the following information to answer
Q36: Pepper Company paid $2,500,000 for the net