Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following items on its books: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $800,000; Land $350,000; Liabilities $650,000; Common Stock $500,000; Retained earnings $305,000. The fair value of the asset items are: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $1,400,000; Land $550,000. Record the journal entry of this acquisition if Company Y offered Company Z 1) $1.8 million and 2) $1.4 million. Question 2 Company Y acquired Company Z on January 1, 2019. Company Z had the following items on its books: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $800,000; Land $350,000; Liabilities $650,000; Common Stock $500,000; Retained earnings $305,000. The fair value of the asset items are: Cash $80,000; Accounts receivable $150,000; Prepaid expense $75,000; Building $1,400,000; Land $550,000. Record the journal entry of this acquisition if Company Y offered Company Z 1) $1.8 million and 2) $1.4 million.
Expert Answer:
Answer rating: 100% (QA)
Account Titles Cash Accounts Receivables Prepaid Expenses Building Land Goodwill Cash Common sto... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
The Peck Company reported the following items on its financial statements for the year ending December 31, 2010: Sales $1,560,000 Cost of Sales $1,400,000 Selling, general and administrative expense...
-
The Finish Line Inc. reported the following items in its fiscal 2014 financial report (dollars in millions): Assume that counting errors caused the ending inventory in 2013 to be understated by $50...
-
The Riegle Company had the following items on its December 31, 20X0, balance sheet and 20X0 income statement (in dollars except for number of shares outstanding): Cash and equivalents $ 60,000...
-
If the interest rate on debt is lower than ROA, then a firm will Valitse yksi: a. increase ROE b. not change ROE c. none of these is correct d. decrease ROE e. change the ROE in an indeterminable...
-
The trial balance of D. Savage Company at the end of its fiscal year, August 31, 2014, includes these accounts: Inventory $17,200; Purchases $149,000; Sales Revenue $190,000; Freight-In $5,000; Sales...
-
To conduct post implementation review, _____________ methods are used. (a) Interview (b) Observation (c) Questionnaire (d) All of these
-
Examine the role of indigenous people in modern-day nations and the challenges that confront them.
-
Hertz Limo Service was organized to provide limousine service between the airport and various suburban locations. It has just completed its second year of business. Its trial balance follows. The...
-
Fall Clothes Line Promotion Market research and analysis show that the proposed advertising media for the new fall lines need to be reprioritized and changed. Findings from focus groups and surveys...
-
Refer to Exercise 3.95. Given that a student, selected at random, is found to have an extensive understanding of physics, what is the probability that the student has (a) an extensive understanding...
-
Research about the concept of experiment and explain what you understood coherently.
-
How much will you need to save each year for 30 years if right after that time you want to have enough money to buy a $2 million house in the country and start living off your savings, using $584,000...
-
Here you go - the non-constant DDM: Jonestown, Inc.'s current dividend of $2.50 is expected to grow 20% for the next 5 years and then fall to 10% thereafter. If the investor's required rate of return...
-
1. convert the credit card rate to APR. Oregon, 11/4% per month. 2. Find the APR (rounded to the nearest tenth of a percent) for the loan described below. purchase a living room set for $3,300 at 10%...
-
Explain as fully as possible the difference between the most important information provided in a company's statement of comprehensive income compared with its statement of financial position
-
1. The market portfolio (M) has the expected rate of return E(rm) = 0.12. Security A is traded in the market. We know that E(A) = 0.17 and BA = 1.5. (a) What is the rate of return of the riskfree...
-
Kendal is studying organizational behavior and learning about the need to acknowledge and appreciate individual differences and perspectives among her co - workers. Kendal is learning about the...
-
You are standing on the top of a building and throw a ball vertically upward. After 2 seconds, the ball passes you on the way down, and 2 seconds after that, it hits the ground below. a. What is the...
-
Nick Andros of Streamline Company suggested that the company speculate in foreign currency as a partial hedge against its operations in the cattle market, which fluctuates like a commodity market. On...
-
Select the correct answer for each of the following questions. Amber Corporation holds 80 percent of the stock of Movie Productions Inc. During 20X4, Amber purchased an inventory of snack bar items...
-
During the recent recession, Polydorous Inc. accumulated a deficit in retained earnings. Although still operating at a loss, the company posted better results during 20X1. Polydorous is having...
-
How closely related do you believe language and thought to be? During the production of Chapter 3 in this book, the authors and editors debated whether we should use the word "autistics" or the...
-
When did human language originate?
-
Describe American styles of nonverbal communication. Are there different styles of nonverbal communication in different areas of the United States?
Study smarter with the SolutionInn App