Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help with journal entries, thank you On January 1, 2024, Blue Spruce Company acquired all the assets and assumed all the liabilities of Crane Company

help with journal entries, thank you
image text in transcribed
image text in transcribed
image text in transcribed
On January 1, 2024, Blue Spruce Company acquired all the assets and assumed all the liabilities of Crane Company and merged Crane into Blue Spruce. In exchange for the net assets of Crane, Blue Spruce gave its bonds payable with a maturity value of $574,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31 , a maturity date of January 1,2034, and a yield rate of 12%. Balance sheets for Blue Spruce and Crane (as well as fair value data) on January 1,2024, were as follows: Prepare the joumal entry on the books of Blue Spruce Company to record the acquisition of Crane Company's assets and liabilities in exchange for the bonds. (Round present value factor calculations to 5 decimal ploces, e\& 1.2 .5124 and fonal answers to 0 decimal places e\& 5,275 . Credit account tibles are automatically indented when the arnount is entered. Do not indent manually. If no entry is required, select "No Entsy" for the account titles and enter Ofor the amounts (ist all debit entries before credit entries) Total equities

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

Accounting Information Systems Controls And Processes

Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland

5th Edition

1119989485, 9781119989486

More Books

Students also viewed these Accounting questions

Question

=+2. Who is the audience?

Answered: 1 week ago