Acquisition Methods Flashcards
1
Q
how to journalized an acquisition costs and related expenses?
A
Dr. Investment in subs (market value)
Dr. Expenses (legal & consulting fees)
Cr. Common stock (par value)
Cr. Cash paid to all expenses
Cr. APIC (plug the difference or equals (investment in subs - CS - acquisition related exp such as registration & issuance costs with SEC))
