1-31 - P1-31 Business Combination with Goodwill a Journal...

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Unformatted text preview: P1-31 Business Combination with Goodwill a. Journal entry to record acquisition of Zink Company net assets: Cash Accounts Receivable Inventory Patents Buildings and Equipment Goodwill Accounts Payable Notes Payable Cash b. Balance sheet immediately following acquisition: Anchor Corporation and Zink Company Combined Balance Sheet February 1, 20X3 Cash Accounts Receivable Inventory Patents Buildings and Equipment Less: Accumulated Depreciation Goodwill $ 82,000 175,000 220,000 140,000 530,000 (190,000) 38,000 $995,000 Accounts Payable Notes Payable Common Stock Additional Paid-In Capital Retained Earnings $140,000 270,000 200,000 160,000 225,000 $995,000 20,000 35,000 50,000 60,000 150,000 38,000 55,000 120,000 178,000 c. Journal entry to record acquisition of Zink Company stock: Investment in Zink Company Common Stock Cash 178,000 178,000 ...
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This note was uploaded on 04/18/2008 for the course ACCT consol taught by Professor Staff during the Spring '06 term at Oklahoma State.

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