3. City Developers purchased a neighborhood company for $4,500,000 cash, on 6/15/2018, acquiring the following assets...

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3. City Developers purchased a neighborhood company for $4,500,000 cash, on 6/15/2018, acquiring the following assets in the

80,000 Office equipment $41.000 35,000 Totals $3,802.000 $3.585,000 Required: Prepare the journal necessary to record these a

4. Temper Company has credit sales of $3.10 million for calendar year 2010. Temper estimates that l% of the credit sales will

business accounting

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Answer 1

Answer #1

3) Journal Entry :-

1.

Date	Particulars	Debit($)	Credit($)
Jun 15, 2018	Purchase Consideration to Neighborhood Company	4500000
	Neighborhood Company		4500000

2.

Date	Particulars	Debit($)	Credit($)
Jun 15, 2018	Land	950000
	Building	2100000
	Production Equipment	420000
	Motor Vehicles	80000
	Office Equipment	35000
	Goodwill (Balance Fig.)	915000
	Purchase Consideration to Neighborhood Company		4500000
	(Being Record Purchase of Neighborhood Company)

3.

Date	Particulars	Debit($)	Credit($)
Jun 15, 2018	Neighborhood Company	4500000
	Cash		4500000
	(Being Purchase Consideration paid in Cash)

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Answer 2

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3. City Developers purchased a neighborhood company for $4,500,000 cash, on 6/15/2018, acquiring the following assets...

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