Question: Landers Inc. is considering purchasing J&B Properties, which has the following assets and liabilities. 1. Make the journal entry necessary for Landers Inc. to record

Landers Inc. is considering purchasing J&B Properties, which has the following assets and liabilities.

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.

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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