Recently, Johnson & Johnson purchased the outstanding common stock of several businesses for $2.8 billion in cash.

Question:

Recently, Johnson & Johnson purchased the outstanding common stock of several businesses for $2.8 billion in cash. The purchase price exceeded the estimated fair market value of the acquired assets by $1.8 billion, and Johnson & Johnson assumed liabilities of $323 million

REQUIRED:

Re-create the journal entry for the acquisitions, and describe how the transaction affected the basic accounting equation.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...