Landers Inc. is considering purchasing J&B Properties, which has the following assets and liabilities. 1. Make the
Question:
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.
Transcribed Image Text:
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
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 82% (17 reviews)
1 Accounts Receivable 200000 Inventory 260000 Prepaid Insurance 12000 ...View the full answer
Answered By
BETHUEL RUTTO
Hi! I am a Journalism and Mass Communication graduate; I have written many academic essays, including argumentative essays, research papers, and literary analysis. I have also proofread and written reviews, summaries and analyses on already finished works. I am eager to continue writing!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Question Posted:
Students also viewed these Accounting questions
-
GUSTAV company has got annual sales volume of 400.000units for the last 4 years. The 2021 end stock in the balance sheet is 450.000 (854.320 units x 0,53/unit). As per the balance sheet below,...
-
The Walt Disney Company had the following assets and liabilities (in millions) as of September 29, 2007. Assets $60,928 Liabilities 30,175 a. Determine the stockholders equity of Walt Disney as of...
-
The Walt Disney Company had the following assets and liabilities (in millions) as of September 30, 2003. Assets ........ $49,988 Liabilities ...... 26,197 a. Determine the stockholders equity of Walt...
-
Randy, Inc., can issue 3-month commercial paper with a face value of $1,500,000 for $1,450,000. Transaction costs will be $1,500. The effective annualized percentage cost of the financing, based on a...
-
In the case of a bargain purchase, why is the adjusted basis to the buyer the fair market value of the property rather than the purchase price? Discuss and give examples.
-
Estimate the number of grapes shown in the photo.
-
If Exercise 8.3 had asked about a book in free fall rather than one on the floor, what would the free-body diagram look like? Data from Exercise 8.3 Draw a free-body diagram for a book lying...
-
You are the project manager for Eagle Golf Corporation. You are considering manufacturing a new golf wedge with a unique groove design. You have put together the estimates in the following table...
-
10. A plastic ball is rising in water with terminal speed v. If we use a different plastic whose density is double that of the original ball but still less that density of water, keeping the radius...
-
Print-for-All is a family-owned print shop that has grown from a three-press two-color operation to a full-service facility capable of performing a range of jobs from simple copying to four-color...
-
Conglomerate Company purchased Individual Company for $860,000 cash. A schedule of the fair values of Individuals assets and liabilities as of the purchase date follows. 1. Make the journal entry...
-
Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated: Estimated Fair Value Internet domain name . . . . . . . . . . . . . . . . . . ....
-
Motormusic Ltd makes a standard model of car radio, which it sells to car manufacturers for 60 each. Next year the business plans to make and sell 20,000 radios. The businesss costs are as follows:...
-
What financial resources by category of expenditure and dollar amount are required to establish, operate and administer the health, safety and security management system for a 1 year period?
-
Ramesh Oil Mills, Bombay, consigned 40,000 kg of castor oil in 10 kg tins to B N Chatterjee, Calcutta, on 1st April, 2017. The cost of oil was Rs. 2 per kg. The consignors paid ~ 10,000 as freight...
-
Five, two-dimensional data points are shown below with their distance matrix, i.e., the symmetric matrix that gives the pairwise distance between any two points. A B C D E A 0 13.32 6.29 37.46 71.39...
-
One of the five financial management imperatives is to "review performance cost drivers." An example of a cost driver for an increase in overtime that was not projected in the budget would be?
-
Note that 561 is not prime, because 561 = 3.11.17. Interestingly, 561 satisfies a curious property that a561 = a (mod 561) holds for every integer a, which makes it 561 an example of a Carmichael...
-
What is the output of the following application? A. true B. false C. The code does not compile. D. The result is unknown until runtime. E. An exception is thrown. F. None of the above. import...
-
Respond to the ethical judgments required based on the following scenarios. Scenario 1. Assume you have collected a sample using MUS and that you have evaluated that sample to calculate a total...
-
Assume that an investor purchased 100 shares of HewlettPackard last year for $40 per share and this year, with the stock price at $48, writes a (covered) sixmonth call with an exercise price of $50....
-
The following facts pertain to a non-cancelable lease agreement between Lennox Leasing Company and Gill Company, a lessee. The Collectibility of the lease payments is reasonably predictable, and...
-
A lease agreement between Lennox Leasing Company and Gill Company is described in E21-8. (Round all numbers to the nearest cent.) Refer to the data in E21-8 and do the following for the lessor. (a)...
-
Fieval Leasing Company signs an agreement on January 1, 2010, to lease equipment to Reid Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6...
-
A 1.50 m segment of wire supplying current to the motor of a submerged submarine carries 1500 A and feels a 3.50 N repulsive force from a parallel wire 3.50 cm away. What is the direction and...
-
Two stars are orbiting each other in a binary system. If one star has a mass of 4.0 10 30 kg, the other star has a mass of 2.0 10 30 kg, and if they are 1.7 10 14 m apart, what is the force of...
-
A 20kW load with 0.41 lagging, is connected to a 3-phase 60Hz ac source, whose line-to-line voltage is 593V (rms) . Calculate the line current in Phase "a" in (rms) Amp
Design Of High Voltage XDSL Line Drivers In Standard CMOS 1st Edition - ISBN: 9048177286 - Free Book
Study smarter with the SolutionInn App