Company acquired assets and liabilties for 60,000,000 cash.
Assets ( Balance Sheet):
cash/receivable 400,000
Inventory 2,000,000
Land and equipmemnt 245,000,000
total : 247,400,000
Liabilities & Equity:
AP 3,000,000
Bonds P 220,000,000
Common Stock 150,000
APIC 25,000,000
RE 1,000,000
Accumulated other comprahensive income (1750,000)
Total: 247,400,000
Fair values at the date is:
Cash 400,000
Inventory 1,300,000
Land builidng 1900,000
AP 3,000,000
Bonds payble 224,000,000
Prepare journal entries :
Solution
Prepare the journal entry to record the purchase of the company.DateAccounts and
ExplanationDebit($)Credit($)Inventory2000000Land and building245000000AP3000000Bonds
Payable224000000Cash6000000Good Will14000000.
Company acquired assets and liabilties for 60,000,000 cash.Assets .pdf
1. Company acquired assets and liabilties for 60,000,000 cash.
Assets ( Balance Sheet):
cash/receivable 400,000
Inventory 2,000,000
Land and equipmemnt 245,000,000
total : 247,400,000
Liabilities & Equity:
AP 3,000,000
Bonds P 220,000,000
Common Stock 150,000
APIC 25,000,000
RE 1,000,000
Accumulated other comprahensive income (1750,000)
Total: 247,400,000
Fair values at the date is:
Cash 400,000
Inventory 1,300,000
Land builidng 1900,000
AP 3,000,000
Bonds payble 224,000,000
Prepare journal entries :
Solution
Prepare the journal entry to record the purchase of the company.DateAccounts and
ExplanationDebit($)Credit($)Inventory2000000Land and building245000000AP3000000Bonds
Payable224000000Cash6000000Good Will14000000
