Smith

Common Stock
Par value

Consideration

FMV of Net Assets Acquired

1. Current Assets
2. NCA, net

3. Current Liabilities
4. Long-term Debts

Goodwill

Journal Entries DR CR
Current Assets 350,000.00
Non-Current Assets, Net 1,910,000.00
Goodwill 380,000.00
Current Liabilities 110,000.00
Long-term Debts 430,000.00
Common Stock (140,000 x P5) 700,000.00
APIC (140,000 x P10) 1,400,000.00
To record merger with Smith

Current Assets 12,000.00

Non-Current Assets, Net 103,000.00
Goodwill 15,000.00
Current Liabilities 9,000.00
Long-term Debts 61,000.00
Common Stock (4,000 x P5) 20,000.00
APIC (4,000 x P10) 40,000.00
To record merger with Platz
 Platz
700,000.00 Common Stock 20,000.00
5.00 Par value 5.00
140,000.00 4,000.00

Subsidiaru 1 Subsidiary 2
2,100,000.00 60,000.00 2,160,000.00

V of Net Assets Acquired

urrent Assets 350,000.00 12,000.00 362,000.00
Long-term 1,890,000.00 98,000.00 1,988,000.00
Exceeded BV 20,000.00 5,000.00 25,000.00

urrent Liabilities (110,000.00) (9,000.00) (119,000.00)

ong-term Debts (430,000.00) (61,000.00) (491,000.00)
1,720,000.00 45,000.00 1,765,000.00

380,000.00 15,000.00 395,000.00