Landers Inc. is considering purchasing J&B Properties, which has the following assets and liabilities. 1. Make the
Question:
1. Make the journal entry necessary for Landers Inc. to record the purchase if the purchase price is $650,000 cash.
2. Assume that the purchase price is $320,000 cash. Make the journal entry necessary to record thepurchase.
Transcribed Image Text:
Cost Fair Value Accounts receivable Inventory Prepaid insurance Buildings and equipment (net) Accounts payable $210,000 250,000 12,000 88,000 (130,000) 430,000 $200,000 260,000 12.000 168,000 (130,000) $ 510,000 Net assets
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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