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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education