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day: gnn Ltd.

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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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On January 1, 2023, AMI Corporation purchased the non-cash net assets of Vaughn Ltd. for $8,295,800. Following is the statement of financial position of Vaughn Ltd. from the company's year-end the previous day: Cash Vaughn LTD. Statement of Financial Position As at December 31, 2022 Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $640,000 552,000 2,580,000 2,070,000 2,520,000 $8,362,000 $272,000 2,520,000 5,570,000 $8,362,000 As part of the negotiations, AMI and Vaughn agreed on the following fair values for the items on Vaughn's statement of financial position:
Transcribed Image Text:On January 1, 2023, AMI Corporation purchased the non-cash net assets of Vaughn Ltd. for $8,295,800. Following is the statement of financial position of Vaughn Ltd. from the company's year-end the previous day: Cash Vaughn LTD. Statement of Financial Position As at December 31, 2022 Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $640,000 552,000 2,580,000 2,070,000 2,520,000 $8,362,000 $272,000 2,520,000 5,570,000 $8,362,000 As part of the negotiations, AMI and Vaughn agreed on the following fair values for the items on Vaughn's statement of financial position:
As part of the negotiations, AMI and Vaughn agreed on the following fair values for the items on Vaughn's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land Accounts payable (a) $550,600 2,350,000 1,890,000 3,670,000 261,800 Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Vaughn Ltd, assuming AMI paid cash for the net assets. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
Transcribed Image Text:As part of the negotiations, AMI and Vaughn agreed on the following fair values for the items on Vaughn's statement of financial position: Accounts receivable Inventory Property, plant, and equipment Land Accounts payable (a) $550,600 2,350,000 1,890,000 3,670,000 261,800 Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Vaughn Ltd, assuming AMI paid cash for the net assets. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
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