REFERENCE: Ref.02_02 Prior to Being United in a Business Combination,Botkins Inc.and Volkerson

question 108

Multiple Choice

REFERENCE: Ref.02_02
Prior to being united in a business combination,Botkins Inc.and Volkerson Corp.had the following stockholders' equity figures: Botkins issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Volkerson.
-Assume that Botkins and Volkerson were being joined in a pooling of interests and this occurred on January 1,2000,using the same values given .Immediately afterwards,what is consolidated Additional Paid-In Capital?

• A)$138,000.
• B)$266,000.
• C)$130,000.
• D)$236,000.
• E)$133,000.

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Definitions:

Journalize

The process of recording financial transactions in a company’s journal, marking the first step in the accounting cycle.

Reconciling Items

Entries made to adjust or reconcile differences between two sets of records or accounts.

Bank Statement

A document provided by a bank that summarizes an account holder's financial transactions and balances over a specified period, typically monthly.

Cash Balance

The amount of cash that a company or an individual has available at any given time.