Homework Help is Here – Start Your Trial Now!
Business
Accounting
Art Incorporated's statement of financial position as at June 30, Year 8, is as follow: Cash Accounts receivable Inventory Property, Plant and Equipment (net) Land Total assets Art Incorporated Statement of Financial Position As of June 30, Year 8 Current liabilities Long-term debt Common shares Retained earnings Total liabilities and equities On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000 Carrying Value $ 15,000 23,000 115,500 854,000 250,000 $ 1,257,500 $ 54,000 335,000 450,000 418,500 $ 1,257,500 Required a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset > Fair Market Value $ Ś 15,000 20,000 120,000 780,000 380,000 54,000 300,000

Art Incorporated's statement of financial position as at June 30, Year 8, is as follow: Cash Accounts receivable Inventory Property, Plant and Equipment (net) Land Total assets Art Incorporated Statement of Financial Position As of June 30, Year 8 Current liabilities Long-term debt Common shares Retained earnings Total liabilities and equities On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000 Carrying Value $ 15,000 23,000 115,500 854,000 250,000 $ 1,257,500 $ 54,000 335,000 450,000 418,500 $ 1,257,500 Required a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset > Fair Market Value $ Ś 15,000 20,000 120,000 780,000 380,000 54,000 300,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do not give answer in image 

Art Incorporated's statement of financial position as at June 30, Year 8, is as follow: Cashi Accounts receivable Inventory Property, Plant and Equipment (net) Land Total assets Current liabilities Long-term debt Art Incorporated Statement of Financial Position As of June 30, Year 8 Common shares Retained earnings Total liabilities and equities On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000 Carrying Value 15,000 23,000 115,500 854,000 250,000 $ 1,257,500 $ $ 54,000 335,000 450,000 418,500 $ 1,257,500 Required a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset > Fair Market Value $ $ 15,000 20,000 120,000 780,000 380,000 54,000 300,000
Transcribed Image Text:Art Incorporated's statement of financial position as at June 30, Year 8, is as follow: Cashi Accounts receivable Inventory Property, Plant and Equipment (net) Land Total assets Current liabilities Long-term debt Art Incorporated Statement of Financial Position As of June 30, Year 8 Common shares Retained earnings Total liabilities and equities On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000 Carrying Value 15,000 23,000 115,500 854,000 250,000 $ 1,257,500 $ $ 54,000 335,000 450,000 418,500 $ 1,257,500 Required a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset > Fair Market Value $ $ 15,000 20,000 120,000 780,000 380,000 54,000 300,000
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Sales and Other Dispositions of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS