Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K. Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

provide correct answer

What is the gross profit for this financial accounting question?

I want to this question answer general accounting

Answer 2

Question

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Answer 6

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

Answer 7

Chapter 1, Problem 1.7E

a.

To determine

To prepare: Journal entries that Company F would record in case of transfer of its assets and accounts payable to Company K.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

Answer 8

a.

Expert Solution

Explanation of Solution

In the books of Company F:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Investment in Company K common stock	66,000
	Accumulated depreciation ($75,000−$47,000)	28,000
	Accounts Payable ($40,000−$18,000)	22,000
	Cash ($40,000−$25,000)		15,000
	Accounts Receivable ($65,000−$41,000)		24,000
	Inventory ($30,000−$21,000)		9,000
	Land ($15,000−$12,000)		3,000
	Depreciable Assets ($180,000−$115,000)		65,000
	(To record formation of subsidiary.)

Table (1)

Investment in Company K common stock is an asset and it is increased by $66,000. Therefore, Investment in Company K common stock account is debited with $66,000.

Accumulated depreciation is a contra asset and it is decreased by $40,000. Therefore, Accumulated depreciation account is debited with $40,000.

Accounts Payable is a liability and it is decreased by $22,000. Therefore, Accounts Payable account is debited with $22,000.

Cash is an asset and it is decreased by $15,000. Therefore, cash account is credited with $15,000.

Accounts Receivable is an asset and it is decreased by $24,000. Therefore, Accounts Receivable account is credited with $24,000.

Inventory is an asset and it is decreased by $9,000. Therefore, Inventory account is credited with $9,000.

Land is an asset and it is decreased by $3,000. Therefore, Land account is credited with $3,000.

Depreciable Asset is an asset and it is decreased by $65,000. Therefore, Depreciable Asset account is credited with $60,000.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Answer 13

b.

To determine

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

Answer 14

b.

Expert Solution

Explanation of Solution

In the books of subsidiary company:

Record transfer of assets and liabilities:

Date	Account	Debit ($)	Credit($)
	Cash	15,000
	Accounts Receivable	24,000
	Inventory	9,000
	Land	3,000
	Depreciable Assets	65,000
	Accumulated depreciation ($75,000−$47,000)		28,000
	Accounts Payable		22,000
	Common Stock		48,000
	Additional paid in capital (15,000+24,000+9,000+3,000+65,000−28,000−22,000−48,000−18,000)		18,000
	(To record receipt of assets and liabilities and issuance of stock.)

Table (2)

Cash is an asset and it is increased by $15,000. Therefore, cash account is debited with $15,000.

Accounts Receivable is an asset and it is increased by $24,000. Therefore, Accounts Receivable account is debited with $24,000.

Inventory is an asset and it is increased by $9,000. Therefore, Inventory account is debited with $9,000.

Land is an asset and it is increased by $3,000. Therefore, Land account is debited with $3,000.

Depreciable Assets is an asset and it is increased by $65,000. Therefore, Depreciable Assets account is debited with $65,000.

Accumulated depreciation is a contra asset and it is increased by $28,000. Therefore, Accumulated depreciation account is credited with $28,000.

Accounts Payable is a contra asset and it is increased by $22,000. Therefore, Accounts Payable account is credited with $22,000.

Common Stock is equity and it is increased by $48,000. Therefore, Common Stock account is credited with $48,000.

Additional paid in capital is equity and it is increased by $18,000. Therefore, Additional paid in capital account is credited with $18,000.

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q Ch. 1 - Prob. 1.11Q

Concept explainers

Explanation of Solution

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions

Concept explainers

Explanation of Solution

To prepare: Journal entries that subsidiary company would record. Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions

To prepare: Journal entries that subsidiary company would record.

Introduction: An asset is a resource owned by business either tangible or intangible form to produce economic value. It provides the future benefits to the business. It is used to increase the value of firm by providing benefits.