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Supernova Company had the following summarized balance sheet on December 31, 20X1: s receivable Assets...

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Accounting

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Supernova Company had the following summarized balance sheet on December 31, 20X1: s receivable Assets Inventory s 200,000 450,000 600,000 150,000 roperty and plant (net) Goodwill Total Notes payable Common stock, $5 par Paid-in capital in excess of par Retained earnings S 600,000 300,000 400,000 100.000 Total The fair value of the inventory and property and plant is $600,000 and $850,000, respectively Assume that Redstar Corporation exchanges 45,000 of its $3 par value shares of common stock, when the fair price is $4/share, for 100% of the common stock of Supernova Company. Redstar acquisition costs of $5,000 and stock issuance costs of $5,000. Journalize Redstar Corporation Investment in Supernova: Prepare a supporting determination and distribution of excess schedule. Prepare Redstar's elimination and adjustment entry for the acquisition of Supernova. 2. 3. ANS 1. Journalize Redstar Corporation Investment in Supernova: 2. Prepare a supporting determination and Distribution of Excess Schedule 3. Worksheet sheet elimination entries PTS: 1

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