Question
Alimama Inc. purchased a EV truck company, Yesla Inc. at $3,500,000 on December 31, 2020. The illustration presents that the statement of Yesla Inc. Yesla
Alimama Inc. purchased a EV truck company, Yesla Inc. at $3,500,000 on December 31, 2020. The illustration presents that the statement of Yesla Inc.
| Yesla Inc. Statement of Financial Position As of December 31,2021 | |
| Property, plant, and equipment, net | $1,000,000 |
| Cash | $50,000 |
| Inventory | $800,000 |
| Account Receivable | $500,000 |
| Accounting Payable | $300,000 |
| Long-term Debt | $1,200,000 |
| Yesla Inc. Fair Values | |
| Property, plant, and equipment, net | $3,000,000 |
| Cash | $50,000 |
| Inventory | $600,000 |
| Account Receivable | $500,000 |
| Accounting Payable | $300,000 |
| Long-term Debt | $1,200,000 |
| Patent | $300,000 |
|
|
|
Prepare the journal entry for this transaction on the date of purchase (December 31, 2020).
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven Mintz, Roselyn Morris
4th edition
978-1259543470, 1259543471, 978-1259730191
