Dec. 31 Purchased an advertising agency for $618,000 cash. The agency's only assets reported on its statement
Question:
Dec. 31 Purchased an advertising agency for $618,000 cash. The agency's only assets reported on its statement of financial position immediately before the purchase were accounts receivable of $52,500, furniture of $159,000, and leasehold improvements of $298,000. Carla Vista hired an independent appraiser who estimated that the fair value of these assets was accounts receivable $52,500, furniture $169,000, and leasehold improvements $323,000. Carla Vista is not assuming any liabilities pertaining to the agency.
Prepair Journal Entry
List of Account is: Furniture / Leasehold Improvements/ Goodwill / Accounts Receivable and Cash
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy