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AKL1
Pertemuan
1
Hillary
Johnson
Advanced
Financial
Accounting
Chapter
1
1.
Asset
Acquisition
with
Bargain
Purchase
Expansionary
Co.
acquired
the
net
assets
of
Contractionary
Co.
on
March
1,
2013
for
10,000
common
shares
($10
par
value
and
$30
market
value).
On
February
1,
2013
Expansionary
Co.
had
incurred
$10,000
direct
cost
consummating
the
acquisition.
Contractionary
Co.
was
then
dissolved.
The
balance
sheet
items
of
Contractionary
Co.
were
as
follows.
Instructions
:
a. Provide
journal
entries
recorded
by
Expansionary
Co.
during
dates
related
to
the
acquisition!
b. Provide
journal
entries
recorded
by
Contractionary
Co.
during
dates
related
to
the
acquisition!
2.
Asset
Acquisition
with
Goodwill
Offensive
Co.
acquired
the
net
assets
of
Defensive
Co.
on
July
31,
2013
for
10,000
common
shares
($1
par
value
and
$75
market
value).
On
August
31,
2013
Offensive
Co.
had
incurred
$20,000
direct
cost
and
$40.000
stock
issuance-related
cost
consummating
the
acquisition.
Defensive
Co.
was
then
dissolved.
The
balance
sheet
items
of
Defensive
Co.
were
as
follows.
As
of
December
31,
2013,
Offensive
Co.
hired
appraisal
stating
that
the
fair
market
value
of
business
units
formerly
owned
by
Defensive
Co.
was
$700,000.
Instructions
:
a. Provide
journal
entries
recorded
by
Offensive
Co.
during
dates
related
to
the
acquisition!
b. Provide
journal
entries
recorded
by
Defensive
Co.
during
dates
related
to
the
acquisition!
c. Provide
journal
entries
recorded
by
Offensive
Co.
at
the
year-end!
3.
Journal
Entries
On
January
1,
20X3,
PURE
Products
Corporation
issued
12,000
shares
of
its
$10
par
value
stock
to
acquire
the
net
assets
of
Light
Steel
Company.
Underlying
book
value
and
fair
value
information
for
the
balance
sheet
items
of
Light
Steel
at
the
time
of
acquisition
follow:
Light
Steel
shares
were
selling
at
$18
and
PURE
Products
shares
were
selling
at
$50
just
before
the
merger
announcement.
Additional
cash
payments
made
by
PURE
Products
in
completing
the
acquisition
were
: