This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. (Click the icon to view the cases) Compare the balances in all the accounts after making both sets of entries. Are the account balances the same or different? Journalize the transactions for cases A and B. (Record debits first, then credits. Exclude explanations from any journal entries Let's begin with case A - Record the issuance of the common stock Journal Entry Accounts Debit Credit Case A Record the purchase of the building and equipment Journal Entry Accounts Debit Credit Debit Credit 600000 Accounts Receivable Building Cash Common Stock Equipment Inventory Operating Expenses Case B Record Paid-in Capital in Excess of Par---Common Paid-in Capital in Excess of Par--Preferred Preferred Stock Sales Revenue Debit Credit Compare the balances in all accounts after making both sets of entries. Are the account balances similar or different? The account balances are More Info Case A - Issue stock and buy the assets in separate transactions Livingston Company issued 11,000 shares of its $15 par common stock for cash of $600,000. In a separate transaction Livingston used the cash to purchase a building for $548,000 and equipment for $52,000 Journalize the two transactions Case B - Issue stock to acquire the assets in a single transaction Livingston Company issued 11,000 shares of its $15 par common stock to acquire a building with a market value of $548,000 and equipment with a market value of $52,000. Journalize this transaction, Print Done