Grand Champion Inc. purchased America's Sweethearts Corporation on January 1, 2019. At the time, America's Sweethearts...
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Grand Champion Inc. purchased America's Sweethearts Corporation on January 1, 2019. At the time, America's Sweethearts had the following assets and liabilities (stated at fair value): Cash Accounts receivable Inventory Property, plant, and equipment Patent Accounts payable Notes payable $63,000 137,000 185,000 300,000 75,000 180,000 325,000 Grand Champion paid $800,000 for America's Sweethearts. Required: Record the purchase by Grand Champion. ASSETS 111 Cash 184 Goodwill 121 Accounts Receivable 125 Notes Receivable 141 Inventory 160 Property, Plant, and Equipment 181 Patent LIABILITIES 211 Accounts Payable 221 Notes Payable 224 Interest Payable 231 Salaries Payable Grand Champion Inc. EQUITY 311 Common Stock 331 Retained Earnings General Ledger REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 513 Delivery Expense 515 Supplies Expense 521 Salaries Expense 532 Bad Debt Expense 536 Advertising Expense 540 Interest Expense 559 Miscellaneous Expenses Grand Champion Inc. purchased America's Sweethearts Corporation on January 1, 2019. At the time, America's Sweethearts had the following assets and liabilities (stated at fair value): Cash Accounts receivable Inventory Property, plant, and equipment Patent Accounts payable Notes payable $63,000 137,000 185,000 300,000 75,000 180,000 325,000 Grand Champion paid $800,000 for America's Sweethearts. Required: Record the purchase by Grand Champion. ASSETS 111 Cash 184 Goodwill 121 Accounts Receivable 125 Notes Receivable 141 Inventory 160 Property, Plant, and Equipment 181 Patent LIABILITIES 211 Accounts Payable 221 Notes Payable 224 Interest Payable 231 Salaries Payable Grand Champion Inc. EQUITY 311 Common Stock 331 Retained Earnings General Ledger REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 513 Delivery Expense 515 Supplies Expense 521 Salaries Expense 532 Bad Debt Expense 536 Advertising Expense 540 Interest Expense 559 Miscellaneous Expenses
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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