6 Question 9 of 11 View Policies Cash Receivables Inventories Current Attempt in Progress On January...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
6 Question 9 of 11 View Policies Cash Receivables Inventories Current Attempt in Progress On January 1, 2024, Novak Company acquired all the assets and assumed all the liabilities of Crane Company and merged Crane into Novak. In exchange for the net assets of Crane, Novak gave its bonds payable with a maturity value of $640,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2034, and a yield rate of 12%. Balance sheets for Novak and Crane (as well as fair value data) on January 1, 2024, were as follows: Land < Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Novak Book Value $271,230 369,560 858,720 700,080 987,900 (316,440) 255,480 (74,960) $3,051,570 Book Value $112,590 164,370 225,350 109,150 397,290 (160,970) 135,170 (85,470) $897,480 Crane Fair Value $112,590 149,110 306,880 305,840 46,540 42,710 -/5 $963,670 ||| : SUPPORT Question 9 of 11 Total assets Current liabilities < Bonds payable, 8% due 1/1/2034, Interest payable 6/30 and 12/31 Common stock, $15 par value Common stock, $5 par value Other contributed capital Retained earnings Total equities $3,051,570 $265,770 1,215,210 954,630 615,960 $3,051,570 $897,480 $91,800 329,800 216,740 185,180 73,960 $897,480 $963,670 $91,800 290,700 ||| - / 5 E ⠀ Prepare the journal entry on the books of Novak Company to record the acquisition of Crane Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) B Question 9 of 11 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) < Account Titles and Explanation > < > > < > Debit Credit - / 5 SUPPORT B Question 9 of 11 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Accounts Receivable Bond Discount Bonds Payable Bond Premium < Account Titles and Explanation Buildings Cash Common Stock Current Liabilities Equipment Gain on Purchase of Business Inventory Land Loss on Purchase of Business No Entry Other Contributed Capital Retained Earnings > > Debit Credit - / 5 !!! : SUPPORT 6 Question 9 of 11 View Policies Cash Receivables Inventories Current Attempt in Progress On January 1, 2024, Novak Company acquired all the assets and assumed all the liabilities of Crane Company and merged Crane into Novak. In exchange for the net assets of Crane, Novak gave its bonds payable with a maturity value of $640,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2034, and a yield rate of 12%. Balance sheets for Novak and Crane (as well as fair value data) on January 1, 2024, were as follows: Land < Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Novak Book Value $271,230 369,560 858,720 700,080 987,900 (316,440) 255,480 (74,960) $3,051,570 Book Value $112,590 164,370 225,350 109,150 397,290 (160,970) 135,170 (85,470) $897,480 Crane Fair Value $112,590 149,110 306,880 305,840 46,540 42,710 -/5 $963,670 ||| : SUPPORT Question 9 of 11 Total assets Current liabilities < Bonds payable, 8% due 1/1/2034, Interest payable 6/30 and 12/31 Common stock, $15 par value Common stock, $5 par value Other contributed capital Retained earnings Total equities $3,051,570 $265,770 1,215,210 954,630 615,960 $3,051,570 $897,480 $91,800 329,800 216,740 185,180 73,960 $897,480 $963,670 $91,800 290,700 ||| - / 5 E ⠀ Prepare the journal entry on the books of Novak Company to record the acquisition of Crane Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) B Question 9 of 11 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) < Account Titles and Explanation > < > > < > Debit Credit - / 5 SUPPORT B Question 9 of 11 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Accounts Receivable Bond Discount Bonds Payable Bond Premium < Account Titles and Explanation Buildings Cash Common Stock Current Liabilities Equipment Gain on Purchase of Business Inventory Land Loss on Purchase of Business No Entry Other Contributed Capital Retained Earnings > > Debit Credit - / 5 !!! : SUPPORT
Expert Answer:
Answer rating: 100% (QA)
CALCULATIONS Land Fair Value Fair Value of Land from Crane 305840 Buildings Fair Value Fair Value of Buildings from Crane 46540 Equipment Fair Value F... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2024, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its...
-
On January 1, 2011, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its...
-
1. a. b. C. d. e. MULTIPLE CHOICE The ratio percentage of earnings retained is the same as that termed: dividend yield dividend payout 2. a. b. C. d. e. UIBS C. d. e. 4. a. b. C. d. e. Class Work 1...
-
A young couple, Eve and Steven, want to divide their main household chores (marketing, cooking, dishwashing, and laundering) between them so that each has two tasks but the total time they spend on...
-
Without using a calculator, find the value of each of the following. Use the x! key on your calculator to check your answers. a. 7! b. 4!/2! c. 7!/3! d. 8!/5! e. 4!/2!2! f. 6!/3!2! g. 6!/(3!) 2 h....
-
A person donates a bag of clothes to Goodwill completely unaware that there is valuable sterling silver in the bag. The clothing and silver are subsequently sold, for a very economical price, to...
-
The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here and on the next page. The adjusted cash balance per bank agreed with the cash balance per books at...
-
A. Let the number be presented by the variable "x". Translate the following mathematical phrases/sentences to mathematical symbol. Statement 1. The product of a number and seven is equal to two more...
-
Contrast the Islamic family with the socialist-law family.
-
5. An internet service provider charges its customers for the time of the internet use rounding it up to the nearest hour. The joint distribution of the used time (X. hours) and the charge per hour...
-
Magnitude 3.9 on mms. Second earthquake has 800 times as much energy. What was the magnitude of the second earthquake
-
If credit (default) risk is the only reason for yield differentials, then what is the default risk premium? During the Great Recession, Highest-Quality Corporate offered 0.8% above UST of the same...
-
Has the organization been penalized for hospital-acquired conditions from 2020 to the present? What type of costs do you perceive that the organization might incur related to the hospital-acquired...
-
Consider a class DrinkMachine that models a vending machine. We will assume it only sells one type of drink. It is constructed with a maximum capacity (number of drinks it can hold). There is a...
-
You have decided to purchase a house and will take a 30-year fixed rate mortgage for $425,000 to be repaid with equal monthly payments. You are told that (12)=0.048. (1) (3 points) What is your...
-
Park Developers Ltd concentrates on township development. During the past few years it has been selling township property to the public and recognising revenue according to the payment method...
-
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
-
On January 1, 2014, Perez Company acquired all the assets and assumed all the liabilities of Stalton Company and merged Stalton into Perez. In exchange for the net assets of Stalton, Perez gave its...
-
On January 1, 2014, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Company's stockholders' equity consisted of the following: Common...
-
What is "marshaling of assets"?
-
A leading financial publication reported that the average baby boomer credit user will pay approximately $1,200 in interest annually. If, instead of paying interest, this amount was saved every year,...
-
With the availability of free credit reports, consumers are encouraged to check their report every 4 months-one report from each of the three major bureaus. In the past, consumers also were...
-
Working in a small group, collect credit card marketing information or the summary of account information sent to cardholders for three to five different cards. Be sure to protect the identity of the...
Study smarter with the SolutionInn App