Hi can someone help me with this problem? Spur Corp. reported the following blan
ID: 2461472 • Letter: H
Question
Hi can someone help me with this problem?
Spur Corp. reported the following blance sheet amounts on Dec 31, 2011
Balance Sheet item
Assets Historical Cost Fair Value
cash & receivalbes 51000 31000
Inventory 119000 145000
Land 42000 20000
Plant & equipment 416000 336000
Less: Acc Depreciation -151000
Patent 128000
Total Assets 477000 660000
Liabilities and Equities
Accounts Payable 62000 67000
Common Stock 197000
Add'l Paid-in capital 19000
Retained Earnings 199000
Total Liabilities and Equities 477000
Blanket acquired Spur corp. assets and liabilites for $676000 cash on Dec31, 2011. Prepare the journal entries to record the purchase.
Explanation / Answer
Account title & Explaination Debit Credit Investment in Spur Corp 676000 Cash 676000 Cash & receivalbes 31000 Inventory 145000 Land 20000 Plant & equipment 336000 Patent 128000 Goodwill 83000 Accounts Payable 67000 Investment in Spur Corp 676000
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