Panda Corporation paid $2,000,000 in cash for all of Sim Corporation’s assets and liabilities in a merger. The following table shows three possible cases for the merger: Fair Value Account Case 1 Case 2 Case 3 Current assets $400,000 $100,000 $300,000 Plant assets 750,000 300,000 2,000,000 Identifiable intangible assets 900,000 200,000 800,000 Liabilities (800,000) (900,000) (1,000,000) Fair value of identifiable net assets $1,250,000 $(300,000) $2,100,000 Required In each of the above cases, prepare the journal entry Panda makes to record the acquisition. Instructions: Not all drop-down answers may be required for the journal entry in each case. If an account is not required, select "N/A" as your answer. Enter answers using all zeros (do not abbreviate to thousands). Case 1: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 2: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer Case 3: (in thousands) General Journal Description Debit Credit Current assets Answer Answer Plant assets Answer Answer Identifiableintangibles Answer Answer Answer Answer Answer Liabilities Answer Answer Cash Answer Answer Answer Answer Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Panda Corporation paid $2,000,000 in cash for all of Sim Corporation’s assets and liabilities in a merger. The following table shows three possible cases for the merger:

	Fair Value
Account	Case 1	Case 2	Case 3
Current assets	$400,000	$100,000	$300,000
Plant assets	750,000	300,000	2,000,000
Identifiable intangible assets	900,000	200,000	800,000
Liabilities	(800,000)	(900,000)	(1,000,000)
Fair value of identifiable net assets	$1,250,000	$(300,000)	$2,100,000

Required

In each of the above cases, prepare the journal entry Panda makes to record the acquisition.

Instructions:

Not all drop-down answers may be required for the journal entry in each case. If an account is not required, select "N/A" as your answer.
Enter answers using all zeros (do not abbreviate to thousands).

Case 1:

(in thousands)

General Journal
Description	Debit	Credit
Current assets	Answer	Answer
Plant assets	Answer	Answer
Identifiableintangibles	Answer	Answer
Answer	Answer	Answer
Liabilities	Answer	Answer
Cash	Answer	Answer
Answer	Answer	Answer

Case 2:

(in thousands)

General Journal
Description	Debit	Credit
Current assets	Answer	Answer
Plant assets	Answer	Answer
Identifiableintangibles	Answer	Answer
Answer	Answer	Answer
Liabilities	Answer	Answer
Cash	Answer	Answer
Answer	Answer	Answer

Case 3:

(in thousands)

General Journal
Description	Debit	Credit
Current assets	Answer	Answer
Plant assets	Answer	Answer
Identifiableintangibles	Answer	Answer
Answer	Answer	Answer
Liabilities	Answer	Answer
Cash	Answer	Answer
Answer	Answer	Answer

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