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[Appendix] Prepare balance sheets of pooled companies Pop Corporation issued its own common stock for all the outstanding shares of Son Corporation
[Appendix] Prepare balance sheets of pooled companies
Pop Corporation issued its own common stock for all the outstanding shares of Son Corporation in a
pooling of interests business combination on January 1, 2000. The balance sheets of the two companies
at December 31, 1999, were as follows (in thousands):
Pop Son
Current assets $15,000 $ 4,000
Plant assets—net 40,000 6,000
Total assets $55,000 $10,000
Liabilities $10,000 $ 3,000
Common stock, $10 par 30,000 4,000
Additional paid-in capital 3,000 2,000
Retained earnings 12,000 1,000
Total equities $55,000 $10,000
REQUIRED : Prepare balance sheets for Pop Corporation on January 1, 2000, immediately after the pooling
of interests in which Son was dissolved under the following assumptions:
1. Pop issued 800,000 of its common shares for all of Son's outstanding shares.
2. Pop issued 1,000,000 of its common shares for all of Son's outstanding shares.
