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The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000

The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000

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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The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000
Transcribed Image Text:The following book and fair values were available for Beech Company as of June 1 Items Inventory Land Book Value $494,000 Fair Value $ 449,500 763,500 1,060,500 Buildings 1,975,000 2,303,500 Trademarks 0 Accounts payable (118,000) 859,500 (118,000) Common stock (2,000,000) Additional paid-in capital Retained earnings, 1/1 (500,000) (427,000) (486,000) Revenues Expenses 298,500 Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 for legal fees to complete the transaction. Required: Prepare Alder's journal entries to record its acquisition of Beech. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is not complete. No Transaction. 1 General Journal Inventory Land 2 2 Buildings Trademarks Accounts payable Cash Professional services expense Cash 00 Debit Credit 449,500 1.060.500 2.303,500 859,500 118,000 4,420,000 49,000 49.000
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