The stockholder's equity of Acme Corporation at December 31,2010 consisted of the       following:                          Common stock $10 par 24,000 shares outstanding     $ 240,000                          Additional paid in capital                                            80,000                          Retained Earnings                                                       60,000                     The Company has been in a tight working capital position and at October 1 sold 16,000         previously unissued common stock to Bugs Corporation for $ 320,000

Subject:AccountingPrice:2.86 Bought7

Share With

The stockholder's equity of Acme Corporation at December 31,2010 consisted of the

      following:

                         Common stock $10 par 24,000 shares outstanding     $ 240,000

                         Additional paid in capital                                            80,000

                         Retained Earnings                                                       60,000

            

 

     The Company has been in a tight working capital position and at October 1 sold 16,000   

     previously unissued common stock to Bugs Corporation for $ 320,000. All of Acme's

     assts and liabilities were recorded at fair value at this date except for building with

     remaining useful life of 5 years that was undervalued by $ 60,000 and equipment with

     resuming useful life of 10 years that was overvalued by $ 20,000 

      

     During 2011 Acme reported net income of $ 180,000 and paid dividends Mar 31 of

     $20,000, June 30 of $20,000; Sept 30 of $ 10,000 and Dec 31 of $ 10,000 for a total of

     $ 60,000 for the year

 

      Required:

1)       Record the entry by Acme corporation on the issue of the shares to Bugs Oct 1 (2 pts)

2)       Record the entries to record the dividends paid every quarter (4 pts)

3)       Record any other entry or entries necessary by Acme at year end Dec 31, 2011

(2 pts)

What is the net assets of Acme Corporation at Dec 31, 2011? (4pts)