E10-13 (Entries for Acquisition of Assets) Presented below is information relate

Question

E10-13 (Entries for Acquisition of Assets) Presented below is information related to Zonker Company.
1. On July 6 Zonker Company acquired the plant assets of Doonesbury Company, which had discontinuedoperations. The appraised value of the property is:

Land $ 400,000
Building 1,200,000
Machinery and equipment 800,000
Total $2,400,000

Zonker Company gave 12,500 shares of its $100 par value common stock in exchange. stock had a market value of $168 per share on the date of the purchase of the property.


Prepare entries on the books of Zonker Company for these transactions.

Explanation / Answer

Debits:
Land 350,000
Buildings 1,050,000
Equipment 700,000

Credits:
Common Stock 1,250,000
Paid-in capital in excess of par 850,000

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