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Deal Corporation issued 4,000 shares of its $10 par value stock with a market value of $85,000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead's fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead's shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal also paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares. Required: Prepare the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 2 3 1 Record the acquisition of ownership in Mead Company by the issuance of shares. Note: Enter debits before credits. Event 1 General Journal Debit Credit

Deal Corporation issued 4,000 shares of its $10 par value stock with a market value of $85,000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead's fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead's shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal also paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares. Required: Prepare the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 2 3 1 Record the acquisition of ownership in Mead Company by the issuance of shares. Note: Enter debits before credits. Event 1 General Journal Debit 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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Deal Corporation issued 4,000 shares of its $10 par value stock with a market value of $85,000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead's fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead's shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal also paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares. Required: Prepare the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 < Record the acquisition of ownership in Mead Company by the issuance of shares. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >
Transcribed Image Text:Deal Corporation issued 4,000 shares of its $10 par value stock with a market value of $85,000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead's fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead's shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal also paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares. Required: Prepare the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 < Record the acquisition of ownership in Mead Company by the issuance of shares. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal >
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