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adjust Other Assets- Holding account balance on Java the Hut's ledgers. adjustment entries Investment in New Castle Coffee Acquisition Expense Debt Setup Fees Other Assets
adjust Other Assets- Holding account balance on Java the Hut's ledgers.
adjustment entries
| Investment in New Castle Coffee | |||
| Acquisition Expense | |||
| Debt Setup Fees | |||
| Other Assets - Holding | |||
| Record Purchase of New Castle Coffee stock (100%) | |||
Prepare the appropriate journal entries to recognize the first quarter transactions currently reported in other assets-holding in the balance sheet of java the Hut (Parent Company)outlined in Schedule 1.
| Schedule 1 | |||||||
| Java the Hut Account Analysis | |||||||
| Other Assets - Holding Account Analysis as of 3/31/18 | |||||||
| Acquisition of New Castle Coffee on 1/1/18 | |||||||
| Stock acquisition of 1,000 shares outstanding (Par Value = $1.00) | |||||||
| Percent of shares outstanding | 100% | ||||||
| Purchase price at settlement | $ 150,000 | ||||||
| Acquisition Expense | $ 12,000 | ||||||
| Debt set-up costs (revolving credit agreement) | $ 6,000 | ||||||
| Acquisition of New Castle Coffee on 1/1/18 | $ 168,000 | ||||||
| Equity investment in Newark Coffee Activity | |||||||
| Purchase of 40% interest of shares outstanding 1/1/18 | $ 44,000 | ||||||
| Dividends received on 3/1/18 (in cash) | $ (2,000) | ||||||
| Equity investment in Newark Coffee Activity | $ 42,000 | ||||||
| Other Assets - Holding Account Analysis as of 3/31/18 | $ 210,000 | ||||||
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