Question

Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company’s balance sheet was as follows:


Required:
A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,560,000 in cash.
B. Repeat the requirement in (A) Assuming that the amount paid was$990,000.


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  • CreatedMarch 13, 2015
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