Bower Company purchased Lark Corporations net assets on January 3, 20X2, for $625,000 cash. In addition, Bower
Question:
Required
Give the journal entry or entries with which Bower recorded its acquisition of Larks netassets.
Transcribed Image Text:
Balance Sheet Item Book Value Fair Value Cash & Receivables Inventory Buildings & Equipment (net) Patent Total Assets $ 50,000 100,000 200,000 50,000 150,000 300,000 200,000 $700,000 $350,000 $ 30,000 100,000 80,000 140,000 $350,000 30,000 Accounts Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (16 reviews)
Journal entries to record acquisition of Lark Corporation net assets Merger Expense 5...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Question Posted:
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
In its 20X7 consolidated income statement , Bower Development Company reported consolidated net income of $961,000 and $39,000 of income assigned to the 30 percent noncontrolling interest in its only...
-
Acquisition Cost On January 1, 2010, Ruby Company purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase: Terms of the purchase...
-
1) overview of the case 2) what are problems faced in financial plan 3) what is solution (suggestions) Let us start by telling you a story. It happened on a typical day of teaching. Luisa was...
-
Dennis Harding is considering acquiring a new automobile that he will use 100% for business. The purchase price of the automobile would be $48,500. If Dennis leased the car for five years, the lease...
-
Explain why a firm will not produce at prices below the shut-down point.
-
What is the result of the statement 5 < 4? a. 1 b. Yes c. True d. False
-
Identify the demographic and lifestyle profile of online consumers.
-
How is the number of factors decided in most EFA programs?
-
Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same...
-
Mary Price went for a consultation about a surgical procedure to remove abdominal fat. When Robert Britton met with her, he wore a nametag that identified him as a doctor, and was addressed as doctor...
-
Anchor Corporation paid cash of $178,000 to acquire Zink Companys net assets on February 1, 20X3. The balance sheet data for the two companies and fair value information for Zink immediately before...
-
Aspro Division is considered to be an individual reporting unit of Tabor Company. Tabor acquired the division by issuing 100,000 shares of its common stock with a market price of $7.60 each. Tabor...
-
What is the effect on interest of an interest rate swap?
-
Global Operations Management is supported by Strategic Supply Chain Management in many ways. Elucidate the following; List and briefly define/describe the Five (5) Components of Strategic Supply...
-
The Alpine House, Inc. is a large winter sports equipment broker. Below is an income statement for the company's ski department for a recent quarter. LA CASA ALPINA, INC. Income Statement - Ski...
-
Two investment portfolios are shown. Investment Portfolio 1 Portfolio 2 ROR Savings Account $1,425 $4,500 2.80% Government Bond $1,380 $3,600 1.55% Preferred Stock $3,400 $2,150 11.70% Common Stock...
-
The following information pertains to JAE Corporation at January 1, Year 1: Common stock, $8 par, 11,000 shares authorized, 2,200 shares issued and outstanding Paid-in capital in excess of par,...
-
Group dynamics are important elements within the leading facet of the P-O-L-C framework. Discuss a time in your professional, school, or personal life when you experienced the Five Stages of Group...
-
Dividend Growth Annual dividends of AT&T Corp (T) grew from $0.96 in 2000 to $1.33 in 2006. What was the annual growth rate? (LG5)
-
How will relating product contribution margin s to the amount of the constrained resource they consume help a company maximize its profits?
-
The average monthly precipitation and potential evapotranspiration (ETP) are given in Table 2.9 . The monthly precipitation and potential evapotranspiration data of Example 2.10 are used. Estimate...
-
The IASB website can be found at www.ifrs.org. At the top of the page, click on the link About Us. Briefly describe the structure of the IASB.
-
Following are descriptions of several independent situations. 1. Rockford Company has a subsidiary in Argentina. The subsidiary does not have much debt because of the high interest costs resulting...
-
Dundee Company owns 100 percent of a subsidiary located in Ireland. The parent company uses the Euro as the subsidiary's functional currency. At the beginning of the year, the debit balance in the...
-
Ted and his partners have contracted to purchase the franchise nights worth 561 000 to open and operate a specialty pizza restaurant called Popper with a renewable agrement, the partners have agreed...
-
Your answer is partially correct. Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some...
-
Kellog Corporation is considering a capital budgeting project that would have a useful life of 4 years and would love testing 5156.000 in equipment that would have zeto salvage value at the end of...
Study smarter with the SolutionInn App