"Balance Sheets for Merger," Assume that the following balance sheets are stated at book value. Construct a postmerger balance sheet assuming that Jurion Co. purchases James Inc. and the pooling of interests method of accounting is used.
Jurion Co.
Current assets $ 8,000 Current liabilities $ 4,500
Net fixed assets 23,000 Long-term debt 8,500
Equity 18,000
Total $31,000 Total $31,000
James Inc.
Current assets $2,600 Current liabilities $1,900
Net fixed assets 7,100 Long-term debt 1,200
Equity 6,600
Total $9,700 Total $9,700