The following book and fair values were available for Beech Company as of June 1:...
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Accounting
The following book and fair values were available for Beech Company as of June 1:
Items
Book Value
Fair Value
Inventory
$ 439,750
$ 401,250
Land
776,250
1,019,250
Buildings
2,025,000
2,346,750
Trademarks
0
873,750
Accounts payable
(114,500)
(114,500)
Common stock
(2,000,000)
0
Additional paid-in capital
(500,000)
0
Retained earnings, 1/1
(445,000)
0
Revenues
(506,500)
0
Expenses
325,000
0
Alder Company pays $4,070,000 cash and issues 24,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Beechs common stock in a merger, after which Beech will cease to exist as a separate entity. Stock issue costs amount to $34,500, and Alder pays $50,600 for legal fees to complete the transaction.
Required:
Prepare Alders journal entries to record its acquisition of Beech.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field 1. Record the acquisition of Beech Company.
2.Record the legal fees related to the combination.
3. Record the payment of stock issuance costs.
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1. Record the acquisition of Beech Company. 