Dave's Dance Company Accounts Receivable Inventory Fixed Assets Accum Deprec $155,000 280,000 $300,000 (150,000) 150,000 Accounts...

 

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Dave's Dance Company Accounts Receivable Inventory Fixed Assets Accum Deprec $155,000 280,000 $300,000 (150,000) 150,000 Accounts Payable Note Payable Common Stock Retained Earnings 22,000 140,000 100,000 100,000 Shea's Shoe Co. will buy Dave's Dance Company for $550,000. They estimate that the Accounts Receivable are worth about $170,000, the Inventory is worth $200,000 and the Fixed Assets are worth $220,000. Everything else is worth its book value. Prepare the journal entry for the purchase on Shea's Shoe Co. books. Dave's Dance Company Accounts Receivable Inventory Fixed Assets Accum Deprec $155,000 280,000 $300,000 (150,000) 150,000 Accounts Payable Note Payable Common Stock Retained Earnings 22,000 140,000 100,000 100,000 Shea's Shoe Co. will buy Dave's Dance Company for $550,000. They estimate that the Accounts Receivable are worth about $170,000, the Inventory is worth $200,000 and the Fixed Assets are worth $220,000. Everything else is worth its book value. Prepare the journal entry for the purchase on Shea's Shoe Co. books.

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To record the purchase of Daves Dance Company on Sheas Shoe Co books we need to account for the fair ... View the full answer