Grand Champion Inc. purchased America’s Sweethearts Corporation on January 1, 2016. At the time, America’s Sweethearts h...
Grand Champion Inc. purchased America’s Sweethearts Corporation on January 1, 2016. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
Cash $63,000
Accounts receivable 142,000
Inventory 185,000
Property, plant, and equipment 300,000
Patent 75,000
Accounts payable 180,000
Notes payable 325,000
Grand Champion paid $800,000 for America’s Sweethearts.
Required: Record the purchase by Grand Champion (General Journal).
Homework Answers
| this is simple | |||
| Date | Accounts | Debit | credit |
| 01-Jan | Cash | 63000 | |
| Accounts receivable | 142000 | ||
| Inventory | 185000 | ||
| Property plant and equipment | 300000 | ||
| Patent | 75000 | ||
| Goodwill | 540000 | ||
| Accounts payable | 180000 | ||
| Notes payable | 325000 | ||
| Cash | 800000 |
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