On January 1, 2018, Grand Corp. purchased Minor Co., paying $250,000 cash and issuinga $50,000 note payable. On January 1, 2018, the balance sheet of Minor Co. was asfollows:ww wwwMinor CompanyBalance Sheetwwww n nAssetsLiabilities and Owners' Equity$40,000$55,000280,000$335,000CashNotes PayableCapitalAcc. Receivable80,000InventoryBuildings(net)Equipment(net)PatentsTrademarks120,00050,00030,0005,00010,000$335,000wwAn appraisal indicated that the fair market value of the receivables was $75,000, and thefair market value of inventory and buildings were $110,000 and $70,000 respectively.According to the appraisal, the patents were worthless.Required: Prepare the journal entry to be record the purchase by Grand Corp.ww w

The journal entry to be recorded by Grand Co for the purchase of Minor Co is shown hereunder :

On January 1, 2018, Grand Corp. purchased Minor Co., paying $250,000 cash and issuing a $50,000 note payable. On January 1, 2018, the balance sheet of Minor Co. was as follows: wwwwww Minor Company Balance Sheet Assets Liabilities and Owners' Equity $40,000 $55,000 280,000 $335,000 Cash Notes Payable binimin Acc. Receivable 80,000 Capital 120,000 Inventory Buildings(net) Equipment(net) Patents 50,000 30,000 5,000 Trademarks 10,000 $335,000 An appraisal indicated that the fair market value of the receivables was $75,000, and the fair market value of inventory and buildings were $110,000 and $70,000 respectively. According to the appraisal, the patents were worthless. Required: Prepare the journal entry to be record the purchase by Grand Corp. www

On January 1, 2018, Grand Corp. purchased Minor Co., paying $250,000 cash and issuing a $50,000 note payable. On January 1, 2018, the balance sheet of Minor Co. was as follows: wwwwww Minor Company Balance Sheet Assets Liabilities and Owners' Equity $40,000 $55,000 280,000 $335,000 Cash Notes Payable binimin Acc. Receivable 80,000 Capital 120,000 Inventory Buildings(net) Equipment(net) Patents 50,000 30,000 5,000 Trademarks 10,000 $335,000 An appraisal indicated that the fair market value of the receivables was $75,000, and the fair market value of inventory and buildings were $110,000 and $70,000 respectively. According to the appraisal, the patents were worthless. Required: Prepare the journal entry to be record the purchase by Grand Corp. www

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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