1. Prepare the acquisition accounting analysis of New Castle Coffee using the information in Schedule 2 and Schedule 2A
2. Prepare the acquisition journal entry for New Castle Coffee based on your work above.
3. Using the journal entry in Number 3, compare the journal entry values by account and amount and identify all differences compared to Schedule 2.
4.   

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Schedule 2 Trial Balance of New Castle Coffee as of 01/01/18 Accounts WTC Checking WTC money market account Accounts Receivable Allowance for uncollectible accounts Inventory Prepaids rent -current Land Building Equipment Accumulated Depreciation Debt set up costs, net Accounts payable Accrued payroll and benefits Accrued expenses Note payable 12/31/16 Common stock 1,000 shares, par $1.00 Additional paid in capital Retained eamings(loss) Total Debit 1,000 4,000 15,000 8,000 5,000 50,000 85,000 48,000 5,000 Credit 2,000 15,000 12,000 3,000 2,000 100,000 1,000 74,000 12,000 221,000 221,000 Schedule 2 Trial Balance of New Castle Coffee as of 01/01/18 Accounts WTC Checking WTC money market account Accounts Receivable Allowance for uncollectible accounts Inventory Prepaids rent -current Land Building Equipment Accumulated Depreciation Debt set up costs, net Accounts payable Accrued payroll and benefits Accrued expenses Note payable 12/31/16 Common stock 1,000 shares, par $1.00 Additional paid in capital Retained eamings(loss) Total Debit 1,000 4,000 15,000 8,000 5,000 50,000 85,000 48,000 5,000 Credit 2,000 15,000 12,000 3,000 2,000 100,000 1,000 74,000 12,000 221,000 221,000

Answer rating: 100% (QA)

Prepare the acquisition accounting analysis for New Castle Coffee 1 Analysis based on Schedule 2 and Schedule 2A Land Building and Equipment The fair ... View the full answer