Consider Dezie's Company Accounts Receivables Inventory Fixed Assets Accum Deprec $900,000 100,000 $300,000 200,000 800,000 Accounts...

 

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Consider Dezie's Company Accounts Receivables Inventory Fixed Assets Accum Deprec $900,000 100,000 $300,000 200,000 800,000 Accounts Payable Note Payable Owners' Equity Common Stock Retained Earnings 250,000 400,000 200,000 450,000 Hayley's Company will buy this company (Dezie's) for $1,200,000. Hayley estimates that the Accounts Receivables are worth $260,000, the Inventory is worth $270,000 and the Fixed Assets are worth $740,000. Everything else is worth its book value. Prepare the journal entry made by Hayley to record the purchase. Consider Dezie's Company Accounts Receivables Inventory Fixed Assets Accum Deprec $900,000 100,000 $300,000 200,000 800,000 Accounts Payable Note Payable Owners' Equity Common Stock Retained Earnings 250,000 400,000 200,000 450,000 Hayley's Company will buy this company (Dezie's) for $1,200,000. Hayley estimates that the Accounts Receivables are worth $260,000, the Inventory is worth $270,000 and the Fixed Assets are worth $740,000. Everything else is worth its book value. Prepare the journal entry made by Hayley to record the purchase.

Answer rating: 100% (QA)

PARTICULARS Dr Cr Purchase Account 1200000 ... View the full answer