Answered step by step
Verified Expert Solution
Question
1 Approved Answer
189 Leases and Goodwill Homework Problem 17 Consider Dezie's Company Accounts Receivables $300,000 Accounts Payable Inventory 200,000 Note Payable Fixed Assets $900,000 Owners' Equity Accum
189 Leases and Goodwill Homework Problem 17 Consider Dezie's Company Accounts Receivables $300,000 Accounts Payable Inventory 200,000 Note Payable Fixed Assets $900,000 Owners' Equity Accum Deprec 100,000 800,000 Common Stock Retained Earnings 250,000 400,000 200,000 450,000 Hayley's Company will buy this company (Dezie's) for $1,200,000. Hayley estimates that the Accounts Receivables are worth $270,000, the Inventory is worth $220,000 and the Fixed Assets are worth $800,000. The Note Payable is interest only at 10% with exactly ten years left before the principle is due. Current interest rates are 8%. Everything else is worth its book value. Prepare the journal entry made by Hayley to record the purchase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started