Eliminate Other Assets - Holding account balance on Java the Hut Ledgers

1.Preparetheappropriatejournalentriestorecognizethefirst quarter

transactions, currently reported in Other Assets - Holding in the balance sheet of Java the Hut (Parent Company) outlined in Schedule 1.

The goal of the journal entries is to eliminate the balance in the Other Asset - Holding account with new accounts to reflect the appropriate accounting recognition.

Prepare an Acquisition Journal Entry to reflect fair values of New Castle Coffee on 1/1

2.PreparetheacquisitionaccountinganalysisofNewCastleCoffee using

theinformationin Schedule2 and Schedule 2A

3.Prepare the acquisition journal entry for New Castle Coffee based on your work above.

4.Using the journal entry in Number 3, compare the journal entry values by

account and amount and identify all differences compared to Schedule 2.