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Haley Corporation pays $3,900,000 in cash to acquire assets from Jaxon Inc., as follows: Fair Value $1,800,000 1,260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100,000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business combination + ◆ + + + ♦ Machinery and equipment + Developed technology ♦ Customer lists ◆ + To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Haley Corporation pays $3,900,000 in cash to acquire assets from Jaxon Inc., as follows: Fair Value $1,800,000 1,260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100,000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business combination + ◆ + + + ♦ Machinery and equipment + Developed technology ♦ Customer lists ◆ + To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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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Haley Corporation pays $3,900,000 in cash to acquire assets from Jaxon Inc., as follows: Fair Value $1,800,000 1,260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100,000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business combination + Machinery and equipment Developed technology Customer lists To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Transcribed Image Text:Haley Corporation pays $3,900,000 in cash to acquire assets from Jaxon Inc., as follows: Fair Value $1,800,000 1,260,000 540,000 Machinery and equipment Developed technology (limited-life) Customer lists (limited-life) In addition, Haley pays $100,000 in cash for legal and advisory costs connected with the acquisition. Required Note: Enter all zeros with your numerical answers, do not abbreviate your answers in thousands or in millions. a. Prepare the journal entry to record the acquisition, assuming it qualifies as a business combination. Credit Machinery and equipment Developed technology Customer lists Merger expenses Goodwill Cash To record the business combination + Machinery and equipment Developed technology Customer lists To record the asset acquisition Debit 1800000 1260000 540000 100,000 b. Prepare the journal entry to record the acquisition, assuming it is an asset acquisition. Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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