P1-1

Pin

Current Assets 520

Land 200
Building -net 1,200
Equipment-net 880
Total assets 2,800

Current Liabilities 200

Capital stock, $10 par 2,000
Additional PIC 200
RE 400
Total equities 2,800

P1-1
Investment in San
Common stock $ 10 par
Additional paid in capital

Investment Expense
Additional Paid in Capital
Cash

Current Assets
Land
Building -net
Equipment-net
Goodwill
Current Liabilities
Investment

Assets Company Pin Book Value Debit Credit

Current Assets 520 400 160

Land 200 400
Building -net 1,200 400
Equipment-net 880 960
Goodwill 480
Total Aset 2,800 2,640 160
 Company Par Book Value Debit Credit

Liabilities
Current Liabilities 200 240
Capital stock, $10 2,000 600
Additional PIC 200 60 1,800
RE 400 100
Total Liabilities 2,800 160 2,640
 San Fair Value San

240 400
400 400
400 400
960 960
2,000 2160

240
800
560
400
2,000

2,400,000 (60.000 x $ 40)

600,000 (60.000 x $10)
1,800,000

100,000
60,000
160,000
Net Asset =
400
400
400 Investment
960 Goodwill
480
240
2,400

Financial
Position
Company Pin
After
Acquisition
760
600
1,600
1,840
480
5,280
 Financial
Position
Company Pin
After
Acquisition
440
2,600
1,940
300
5,280
Asset - Liabilities

1,920,000
2,400,000
480,000