St. Paul Sewer Inc. purchased 70% of Pipestone Pipe Inc. in a Stock Acquisition. The CEO...
- St. Paul Sewer Inc. purchased 70% of Pipestone Pipe Inc. in a Stock Acquisition. The CEO of St. Paul Sewer Inc. mentioned that there is an accounts receivable due from Pipestone Pipe Inc. in the amount of $12,000. How should St. Paul Sewer Inc. account for this inter-company (affiliated company) receivable? Provide the journal entry with your explanation.
Homework Answers
Journal Entry:-
Pipestone Pipe Inc.Shareholder's A/c Dr. $12,000
To Accounts Receivable A/c $12,000
(Being Accounts receivable adjusted against the amount due to the Pipestone Pipe Inc's. Shareholders)
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St. Paul Sewer Inc. purchased 70% of Pipestone
Pipe Inc. in a Stock Acquisition. The CEO...
2. St. Paul Sewer Inc. purchased 70% of Pipestone Pipe Inc. in a Stock Acquisition. The...
2. St. Paul Sewer Inc. purchased 70% of Pipestone Pipe Inc. in a Stock Acquisition. The CEO of St. Paul Sewer Inc. mentioned that there is an accounts receivable due from Pipestone Pipe Inc. in the amount of $12,000. How should St. Paul Sewer Inc. account for this inter-company (affiliated company) receivable? Provide the journal entry with your explanation.
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following...
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following acquisition information. Note: The CEO has not decided whether they will purchase Bloomington Re-Bar Company using the “Asset Acquisition Method” or the “Stock Acquisition Method.” Bloomington Re-Bar Company Book value Fair Value Cash 450,000 450,00 Account Receivable 1,950,000 1,785,000 Inventory 3,650,000 3,250,000 Building(net) 2,500,000 2,600,000 Equipment 3,250,000 2,200,000 Land 110,000 1,500,000 Account payable 2,850,000 3,125,000 ...
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following...
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following acquisition information. Note: The CEO has not decided whether they will purchase Bloomington Re-Bar Company using the “Asset Acquisition Method” or the “Stock Acquisition Method.” Bloomington Re-Bar Company Book value Fair Value Cash 450,000 450,00 Account Receivable 1,950,000 1,785,000 Inventory 3,650,000 3,250,000 Building(net) 2,500,000 2,600,000 Equipment 3,250,000 2,200,000 Land 110,000 1,500,000 Account payable 2,850,000 3,125,000 ...
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following...
Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following acquisition information. Note: The CEO has not decided whether they will purchase Bloomington Re-Bar Company using the “Asset Acquisition Method” or the “Stock Acquisition Method.” Bloomington Re-Bar Company Book value Fair Value Cash 450,000 450,00 Account Receivable 1,950,000 1,785,000 Inventory 3,650,000 3,250,000 Building(net) 2,500,000 2,600,000 Equipment 3,250,000 2,200,000 Land 110,000 1,500,000 Account payable 2,850,000 3,125,000 ...
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business is growing quickly. Therefore, the CEO, Paul Molitor,
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terms of acquisition for each truck are described below.
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is $21,000. Molitor exchanges home theater equipment from its
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uses a perpetual inventory system.
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