Complete the template

Problem $1-4($LO $3,4)$ Alternate consideration, bargain.

Kiln Corporation is considering the acquisition of Williams Incorporated. Kiln has asked you, its accountant, to evaluate the various offers it might make to Williams Incorporated. The December $31,2015,$ balance sheet of Williams is as follows:

The following fair values differ from existing book values:

Required

Record the acquisition entry for Kiln Corporation that would result under each of the alternative offers. Value analysis is suggested.

$1.$ Kiln Corporation issues $20,000$ of its $\backslash (\backslash$$ $10\backslash )$ par common stock with a fair value of $\backslash (\backslash$$ $25\backslash )$ per share for the net assets of Williams Incorporated.

$2.$ Kiln Corporation pays $\backslash (\backslash$$ $385,000\backslash )$ in cash.

Problem $1-4$

Purchased by issuing stock

Value Analysis

Total Price Paid

Total Fair Value of Net Assets

Accounts receivable

Inventory

Land

Building

Accounts payable

Others

Total Fair Value of Net Assets

Goodwill

Gain on Purchase of Business

Entry

Account Name

Debit

Credit

Purchased for cash

Value Analysis

Total Price Paid

Total Fair Value of Net Assets

Accounts receivable

Inventory

Land

Building

Accounts payable

Others

Total Fair Value of Net Assets

Goodwill

Gain on Purchase of Business