Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date,

image text in transcribed

image text in transcribed

Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1, 2018, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair values were available for the Deluxe Company accounts Book Fair Values Values Current assets Building Land Trademark Goodwill Liabilities Common stock Retained earnings $ 46,750 46,750 100,750 57,850 35,350 38,000 15,750 23,000 (51,250) (51,250) (100,000) (35,000) 1&2. Prepare Allerton's entry to record its acquisition of Deluxe in its accounting records assuming the following cash exchange amounts: $165,500 and $102,500. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2 Record the acquisition of Delex assuming the cash exchange of $165,500 Note: Enter debits before credits Transaction General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Textbook Of Cost And Management Accounting

Authors: Arora

10th Edition

9789325956209

More Books

Students also viewed these Accounting questions