Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago fo

Question

Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $810,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses At the present time, Marmon reports $830,000 as total stockholders' equity, which is broken down as follows Common stock (S12 par value) Additional paid-in capital Retained earnings 360,000 350,000 120,000 Total $830,000 View the following as independent situations: a. &b.; Marmon sells 15,000 and 6,000 shares of previously unissued common stock to the public for $41 and $21 per share. Albuquerque purchased none of this stock. What journal entry should Albuquerque make to recognize the impact of this stock transaction? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.) View transaction list Journal entry worksheet Record the entry to recognize the impact of selling of 15,000 shares.

Explanation / Answer

1) Journal entry

2) Journal entry

Date accounts & explanation debit credit Cash (15000*41) 615000 Common Stock (15000*12) 180000 Additional paid in capital 435000 (To record issue common stock)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.