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Blue Spruce Corporation purchased the net assets of Crane Corporation on January 2, 2020 for $571,200 and also paid $ 20,400 in direct acquisition costs. Crane's balance sheet on January 1, 2020 was as follows: Accounts receivable-net Inventory Land Building-net Equipment-net Total assets $ 183,600 Current liabilities (b) 367,200 Long term debt 40,800 Common stock ($1 par) 61,200 81,600 Paid-in capital Retained earnings $734,400 Total liab. & equity Account Titles and Explanation $71,400 163,200 Debit 20,400 438,600 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 407,200, $ 50,800 and $ 71,600, respectively. Crane has patent rights valued at $ 20,400. 40,800 $734,400 Assume Blue Spruce Corporation purchased the net assets of Crane Corporation for $571,200 rather than $ 511,200, 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.) Credit

Blue Spruce Corporation purchased the net assets of Crane Corporation on January 2, 2020 for $571,200 and also paid $ 20,400 in direct acquisition costs. Crane's balance sheet on January 1, 2020 was as follows: Accounts receivable-net Inventory Land Building-net Equipment-net Total assets $ 183,600 Current liabilities (b) 367,200 Long term debt 40,800 Common stock ($1 par) 61,200 81,600 Paid-in capital Retained earnings $734,400 Total liab. & equity Account Titles and Explanation $71,400 163,200 Debit 20,400 438,600 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 407,200, $ 50,800 and $ 71,600, respectively. Crane has patent rights valued at $ 20,400. 40,800 $734,400 Assume Blue Spruce Corporation purchased the net assets of Crane Corporation for $571,200 rather than $ 511,200, 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.) Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Spruce Corporation purchased the net assets of Crane Corporation on January 2, 2020 for $ 571,200 and also paid $ 20,400 in direct acquisition costs. Crane's balance sheet on January 1, 2020 was as follows: Accounts receivable-net Inventory Land Building-net Equipment-net Total assets $ 183,600 (b) 367,200 40,800 61,200 81,600 $734,400 Current liabilities Long term debt Account Titles and Explanation Common stock ($1 par) Paid-in capital Retained earnings Total liab. & equity $71,400 163,200 Debit 20,400 438,600 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 407,200, $50,800 and $ 71,600, respectively. Crane has patent rights valued at $ 20,400. 40,800 $734,400 Assume Blue Spruce Corporation purchased the net assets of Crane Corporation for $ 571,200 rather than $ 511,200, 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.) Credit
Transcribed Image Text:Blue Spruce Corporation purchased the net assets of Crane Corporation on January 2, 2020 for $ 571,200 and also paid $ 20,400 in direct acquisition costs. Crane's balance sheet on January 1, 2020 was as follows: Accounts receivable-net Inventory Land Building-net Equipment-net Total assets $ 183,600 (b) 367,200 40,800 61,200 81,600 $734,400 Current liabilities Long term debt Account Titles and Explanation Common stock ($1 par) Paid-in capital Retained earnings Total liab. & equity $71,400 163,200 Debit 20,400 438,600 Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 407,200, $50,800 and $ 71,600, respectively. Crane has patent rights valued at $ 20,400. 40,800 $734,400 Assume Blue Spruce Corporation purchased the net assets of Crane Corporation for $ 571,200 rather than $ 511,200, 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.) Credit
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