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Presented below is information related to Zonker Company. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The
Presented below is information related to Zonker Company. On July 6, Zonker Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is: Zonker Company gave 12, 500 shares of its $100 par value common stock in exchange. The stock had a fair value of $180 per share on the date of the purchase of the property. Zonker Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.) On December 20, the company paid cash for equipment, $282,000, subject to a 2% cash discount, and freight on equipment of $10, 480. Prepare entries on the books of Zonker Company for these transactions. (Credit account titles automatically indented when entered. Do not indent manually. amounts.)
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