Edina Company, paying $ 2 , 6 0 0 , sets ( except cash ) and assumed
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Question:
Edina Company, paying $sets except cash and assumed the liabilities of Burns Company on January pas fol cash. Immediately prior to the acquisition, Burns Company' balance sheet was as follows:
BOOK VALUE
Accounts receivable net
Inventory
$
FAIR VALUE $
Land
Buildings net
Total
$
$
Accounts payable
$
Note payable
$
Common stock, $ par
Other contributed capital
Retained earnings
Total
$
Edina Company agreed to pay Burns Company's former stockholders $ cash in if post combination earnings of the combined company reached $ during
Required:
A Prepare the journal entry necessary for Edina Company to record the acquisition on January It is expected that the earnings target is likely to be met.
B Prepare the journal entry necessary for Edina Company in assuming the earnings contingency was not met.
Related Book For
Posted Date: