Current Attempt in Progress On January 1, 2024, Novak Company acquired all the assets and assumed...

      

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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: Novak Crane Book Value Book Value Fair Value Cash $271,230 $112,590 $112,590 Receivables 369,560 164,370 149,110 Inventories 858,720 225,350 306,880 Land 700,080 109,150 305,840 Buildings 987,900 397,290 46,540 Accumulated depreciation-buildings (316,440) (160,970) Novak Crane Book Value Book Value Fair Value Cash Receivables $271,230 $112,590 $112,590 369,560 164,370 149,110 Inventories 858,720 225,350 306,880 Land 700,080 109,150 305,840 Buildings 987,900 397,290 46,540 Accumulated depreciation-buildings (316,440) (160,970) Equipment 255,480 135,170 42,710 Accumulated depreciation-equipment (74,960) (85,470) Total assets $3,051,570 $897,480 $963,670 Current liabilities $265,770 $91,800 $91,800 Total assets $3,051,570 $897,480 $963,670 Current liabilities $265,770 $91,800 $91,800 Bonds payable, 8% due 1/1/2034, Interest 329,800 290,700 payable 6/30 and 12/31 Common stock, $15 par value 1,215,210 Common stock, $5 par value 216,740 Other contributed capital 954,630 185,180 Retained earnings 615.960 73,960 Total equities $3,051,570 $897,480 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.) Account Titles and Explanation Debit Credit < > > > 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: Novak Crane Book Value Book Value Fair Value Cash $271,230 $112,590 $112,590 Receivables 369,560 164,370 149,110 Inventories 858,720 225,350 306,880 Land 700,080 109,150 305,840 Buildings 987,900 397,290 46,540 Accumulated depreciation-buildings (316,440) (160,970) Novak Crane Book Value Book Value Fair Value Cash Receivables $271,230 $112,590 $112,590 369,560 164,370 149,110 Inventories 858,720 225,350 306,880 Land 700,080 109,150 305,840 Buildings 987,900 397,290 46,540 Accumulated depreciation-buildings (316,440) (160,970) Equipment 255,480 135,170 42,710 Accumulated depreciation-equipment (74,960) (85,470) Total assets $3,051,570 $897,480 $963,670 Current liabilities $265,770 $91,800 $91,800 Total assets $3,051,570 $897,480 $963,670 Current liabilities $265,770 $91,800 $91,800 Bonds payable, 8% due 1/1/2034, Interest 329,800 290,700 payable 6/30 and 12/31 Common stock, $15 par value 1,215,210 Common stock, $5 par value 216,740 Other contributed capital 954,630 185,180 Retained earnings 615.960 73,960 Total equities $3,051,570 $897,480 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.) Account Titles and Explanation Debit Credit < > > >