On January 2, 2013 Carolina Clothing Issued 100,000 New Shares

question 32

Essay

On January 2, 2013 Carolina Clothing issued 100,000 new shares of its $5 par value common stock valued at $19 a share for all of Dakota Dressing Company's outstanding common shares in an acquisition. Carolina paid $15,000 for registering and issuing securities and $10,000 for other direct costs of the business combination. The fair value and book value of Dakota's identifiable assets and liabilities were the same. Assume Dakota Company is dissolved on the date of the acquisition. Summarized balance sheet information for both companies just before the acquisition on January 2, 2013 is as follows:
Required:
Prepare a balance sheet for Carolina Clothing immediately after the business combination.

---

Definitions:

Fibrinogen Inactivator

An enzyme or agent that inhibits the function of fibrinogen, a protein necessary for blood clot formation.

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin, an essential step in hemostasis.

Platelet Formation

The process of creating platelets, which are small blood cells that play a critical role in blood clotting and wound healing, from the fragmentation of megakaryocytes.

Clotting

The process by which blood changes from a liquid to a solid state to stop bleeding, also known as coagulation.