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Prepare the journal entry on the books of Culver Company to record the acquisition of Pharoah Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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.) Account Titles and Explanation Debit Credit Culver Pharoah Book Value Book Value Fair Value Cash Receivables Inventories $226,890 $117,490 $117,490 332,910 151,830 137,570 832,880 235,320 314,470 Land 636,070 96,720 301,950 Buildings 970,800 404,460 64,250 Accumulated depreciation-buildings (351,730) (158,360) Equipment 254,030 123,050 18,590 Accumulated depreciation-equipment (69,430) (97,370) Total assets $2,832,420 $873,140 $954,320 Current liabilities $277,000 $92,020 $92,020 Bonds payable, 8% due 1/1/2034, Interest 276,500 240,400 payable 6/30 and 12/31 Common stock, $15 par value 1,173,140 Common stock, $5 par value 252,040 Other contributed capital 890,170 157,700 Retained earnings 492,110 94,880 Total equities $2,832,420 $873,140

Prepare the journal entry on the books of Culver Company to record the acquisition of Pharoah Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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.) Account Titles and Explanation Debit Credit Culver Pharoah Book Value Book Value Fair Value Cash Receivables Inventories $226,890 $117,490 $117,490 332,910 151,830 137,570 832,880 235,320 314,470 Land 636,070 96,720 301,950 Buildings 970,800 404,460 64,250 Accumulated depreciation-buildings (351,730) (158,360) Equipment 254,030 123,050 18,590 Accumulated depreciation-equipment (69,430) (97,370) Total assets $2,832,420 $873,140 $954,320 Current liabilities $277,000 $92,020 $92,020 Bonds payable, 8% due 1/1/2034, Interest 276,500 240,400 payable 6/30 and 12/31 Common stock, $15 par value 1,173,140 Common stock, $5 par value 252,040 Other contributed capital 890,170 157,700 Retained earnings 492,110 94,880 Total equities $2,832,420 $873,140

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8EB: Using the information from EB7, calculate depreciation using the straight-line method.
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Prepare the journal entry on the books of Culver Company to record the acquisition of Pharoah Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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.) Account Titles and Explanation Debit Credit
Transcribed Image Text:Prepare the journal entry on the books of Culver Company to record the acquisition of Pharoah Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275. 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.) Account Titles and Explanation Debit Credit
Culver Pharoah Book Value Book Value Fair Value Cash Receivables Inventories $226,890 $117,490 $117,490 332,910 151,830 137,570 832,880 235,320 314,470 Land 636,070 96,720 301,950 Buildings 970,800 404,460 64,250 Accumulated depreciation-buildings (351,730) (158,360) Equipment 254,030 123,050 18,590 Accumulated depreciation-equipment (69,430) (97,370) Total assets $2,832,420 $873,140 $954,320 Current liabilities $277,000 $92,020 $92,020 Bonds payable, 8% due 1/1/2034, Interest 276,500 240,400 payable 6/30 and 12/31 Common stock, $15 par value 1,173,140 Common stock, $5 par value 252,040 Other contributed capital 890,170 157,700 Retained earnings 492,110 94,880 Total equities $2,832,420 $873,140
Transcribed Image Text:Culver Pharoah Book Value Book Value Fair Value Cash Receivables Inventories $226,890 $117,490 $117,490 332,910 151,830 137,570 832,880 235,320 314,470 Land 636,070 96,720 301,950 Buildings 970,800 404,460 64,250 Accumulated depreciation-buildings (351,730) (158,360) Equipment 254,030 123,050 18,590 Accumulated depreciation-equipment (69,430) (97,370) Total assets $2,832,420 $873,140 $954,320 Current liabilities $277,000 $92,020 $92,020 Bonds payable, 8% due 1/1/2034, Interest 276,500 240,400 payable 6/30 and 12/31 Common stock, $15 par value 1,173,140 Common stock, $5 par value 252,040 Other contributed capital 890,170 157,700 Retained earnings 492,110 94,880 Total equities $2,832,420 $873,140
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