Question
Crane Industries purchased all the following assets and liabilities of Protector Goods for $996,000 cash: Book Value Fair Value Accounts Receivable $137,000 $137,000 Inventory 90,000
Crane Industries purchased all the following assets and liabilities of Protector Goods for $996,000 cash:
| Book Value | Fair Value | |||
| Accounts Receivable | $137,000 | $137,000 | ||
| Inventory | 90,000 | 99,000 | ||
| Property, Plant & Equipment (net) | 555,000 | 680,000 | ||
| Land | 171,000 | 190,000 | ||
| Accounts Payable | 79,000 | 79,000 | ||
| Notes Payable | 114,000 | 114,000 |
Prepare the appropriate journal entries for Crane Industries on acquisition. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| Account Titles and Explanation | Debit | Credit |
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment | ||
| Accounts PayableAccounts ReceivableCashGoodwillInventoryLandNo EntryNotes PayableProperty, Plant and Equipment |
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0133392883
