Winston has the following account balances as of February 1.
|
Inventory |
$ 600,000 |
|
Land |
500,000 |
|
Buildings (net) (valued at $1,000,000) |
900,000 |
|
Common stock ($10 par value) |
(800,000) |
|
Retained earnings, 1/1 |
(1,100,000) |
|
Revenues |
(600,000) |
|
Expenses |
500,000 |
Arlington pays $1.4 million cash and issues 10,000 shares of its $30 par value common stock (valued at $80 per share) for all of Winston’s outstanding stock. Stock issuance costs amount to $30,000. Prior to recording these newly issued shares, Arlington reports a Common Stock account of $900,000 and Additional Paid In Capital of $500,000. For each of the following accounts, determine what balance would be included in a February 1 consolidation.
a. Goodwill.
b. Expenses.
c. Retained Earnings, 1/1.
d. Buildings.