Prepare the journal entries to record the assets acquired and liabilities assumed. Adjusted Fair Value Accounts Receivable 830 Contract assets 1,670 Inventories 1,020 Other current assets 500 Property, plant and equipment 1,220 Operating lease right-of-use assets 700 Goodwill 14,650 Other intangible assets 7,880 Other non-current assets 320 Total assets acquired 28790 Accounts payable 880 Contract liabilities 700 Other current liabilities 830 Operating lease liabilities 720 Defined benefit plans 1,300 Long-term debt, net 3,550 Other long-term liabilities 1,870 Total liabilities assumed 9,850 Net assets acquired 18,940 Noncontrolling interests 160 Total net consideration transferred 18,780
Prepare the journal entries to record the assets acquired and liabilities assumed. Adjusted Fair Value Accounts Receivable 830 Contract assets 1,670 Inventories 1,020 Other current assets 500 Property, plant and equipment 1,220 Operating lease right-of-use assets 700 Goodwill 14,650 Other intangible assets 7,880 Other non-current assets 320 Total assets acquired 28790 Accounts payable 880 Contract liabilities 700 Other current liabilities 830 Operating lease liabilities 720 Defined benefit plans 1,300 Long-term debt, net 3,550 Other long-term liabilities 1,870 Total liabilities assumed 9,850 Net assets acquired 18,940 Noncontrolling interests 160 Total net consideration transferred 18,780
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M&A
Company A acquires Company B on May 1, 2016. The following data includes measurements of assets, liabilities, and non-controlling interest as of the closing date.
Prepare the journal entries to record the assets acquired and liabilities assumed.
| Adjusted Fair Value | ||
| 830 | ||
| Contract assets | 1,670 | |
| Inventories | 1,020 | |
| Other current assets | 500 | |
| Property, plant and equipment | 1,220 | |
| Operating lease right-of-use assets | 700 | |
| 14,650 | ||
| Other intangible assets | 7,880 | |
| Other non-current assets | 320 | |
| Total assets acquired | 28790 | |
| Accounts payable | 880 | |
| Contract liabilities | 700 | |
| Other current liabilities | 830 | |
| Operating lease liabilities | 720 | |
| Defined benefit plans | 1,300 | |
| Long-term debt, net | 3,550 | |
| Other long-term liabilities | 1,870 | |
| Total liabilities assumed | 9,850 | |
| Net assets acquired | 18,940 | |
| Noncontrolling interests | 160 | |
| Total net consideration transferred | 18,780 |
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