MarigoldCorporation purchased the net assets of Sandhill Corporation on January 2, 2020 for $616,000 and also...

  

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MarigoldCorporation purchased the net assets of Sandhill Corporation on January 2, 2020 for $616,000 and also paid $ 22,000 in direct acquisition costs. Sandhill's balance sheet on January 1, 2020 was as follows: Accounts receivable-net $198,000 Current liabilities Inventory Land Building-net Equipment-net Total assets 396,000 Long term debt 44,000 Common stock ($1 par) 66,000 Paid-in capital 88,000 Retained earnings $792,000 Total liab. & equity $77,000 176,000 22,000 473,000 44,000 $792,000 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $436,000, $ 54,000 and $ 78,000, respectively. Sandhill has patent rights valued at $ 22,000. Prepare Marigold's general journal entry for the cash purchase of Sandhill's net assets. (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 Assume Marigold Corporation purchased the net assets of Sandhill Corporation for $556,000 rather than $616,000, prepare the general journal entry. (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 MarigoldCorporation purchased the net assets of Sandhill Corporation on January 2, 2020 for $616,000 and also paid $ 22,000 in direct acquisition costs. Sandhill's balance sheet on January 1, 2020 was as follows: Accounts receivable-net $198,000 Current liabilities Inventory Land Building-net Equipment-net Total assets 396,000 Long term debt 44,000 Common stock ($1 par) 66,000 Paid-in capital 88,000 Retained earnings $792,000 Total liab. & equity $77,000 176,000 22,000 473,000 44,000 $792,000 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $436,000, $ 54,000 and $ 78,000, respectively. Sandhill has patent rights valued at $ 22,000. Prepare Marigold's general journal entry for the cash purchase of Sandhill's net assets. (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 Assume Marigold Corporation purchased the net assets of Sandhill Corporation for $556,000 rather than $616,000, prepare the general journal entry. (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

Answer rating: 100% (QA)

1 Date January 2 2020 Account Titles and Explanation Debit Credit Accounts Receiv... View the full answer