[shredz123]

he financial statements for Metzger Inc. and Ortiz Corp. just prior to their combination, for the year ending December 31, 20X2, follow. Ortiz's buildings were undervalued on its financial records by $80,000. Metzger Inc. Ortiz Corp. Revenues $1,800,000 $700,000 Expenses (1,580,000) (590,000) Net income $220,000 $110,000 Retained earnings, January 1, 2012 800,000 600,000 Net income (above) 220,000 110,000 Dividends paid (130,000) (80,000) Retained earnings, December 31, 2012 $890,000 $630,000 Cash $240,000 $160,000 Receivables and inventory 270,000 260,000 Buildings (net) 850,000 500,000 Equipment (net) 800,000 490,000 Total assets $2,160,000 $1,410,000 Liabilities $310,000 $155,000 Common stock 850,000 530,000 Additional paid-in capital 110,000 95,000 Retained earnings, December 31, 20X2 (above) 890,000 630,000 Total liabilities and stockholders' equity $2,160,000 $1,410,000 On December 31, 20X2, Metzger issued 58,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Ortiz. Metzger's shares had a fair value on that date of $40 per share. Metzger paid $38,000 to an investment bank for assisting in the arrangements. Metzger also paid $28,000 in stock issuance costs to effect the acquisition of Ortiz. Ortiz will retain its incorporation. -1) Prepare the journal entry to record the issuance of common stock by Metzger. -2) Prepare the journal entry to record the payment of combination costs. -3) Determine consolidated net income for the year ended December 31, 20X2. -4) Determine consolidated additional paid-in capital at December 31, 20X2.

[smoothy]

THis is your homework assignment. You did not cut and paste your work or your answer for anyone to critique what you did. And we don't simply do your work for you so you don't have to. You learn nothing that way.

[paraclete]

Accounting information that is unformated is incomprehensible, your first lessons in accounting should be about presentation