Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Module 11 Homework Problem 11-1 Consider Dezie's Company Accounts Receivables $300,000 Accounts Payable Inventory 200,000 Note Payable Fixed Assets $900,000 Owners' Equity Accum Deprec 100,000
Module 11 Homework Problem 11-1 Consider Dezie's Company Accounts Receivables $300,000 Accounts Payable Inventory 200,000 Note Payable Fixed Assets $900,000 Owners' Equity Accum Deprec 100,000 800,000 Common Stock Retained Earnings 250,000 400,000 200,000 450,000 Hayley's Company will buy this company (Dezie's) for $1,200,000. Hayley estimates that the Accounts Receivables are worth $250,000, the Inventory is worth $220,000 and the Fixed Assets are worth $770,000. The Note Payable is interest only at 10% with exactly ten years left before the principle is due. Everything else is worth its book value. Prepare the journal entry made by Hayley to record the purchase
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669c27b008077_807669c27af9d051.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started