Solution to Chapter 1 Sample Quiz

Solution to Chapter 1 Sample Quiz - Accounts receivable...

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Solution to Chapter 1 Sample Quiz 1. D 2. D 3. B 4. A 5. A 6. B 7. A 8. B 9. D 10. A 11. D 12. D
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Part II 1. General journal entry recorded by Bison for the acquisition of Deer (Deer survives as a separate legal entity): Investment in Deer 1,900,000 Common stock 500,000 Paid-in capital 1,400,000 Investment Expense 10,000 Paid-in capital 15,000 Cash 25,000 2. General journal entry recorded by Bison for the acquisition of Deer (Deer dissolves as a separate legal entity): Cash 120,000 Inventories 400,000 Other current assets 500,000 Land 250,000 Plant assets 1,500,000 Goodwill 90,000 Accounts payable 300,000 Notes payable 660,000 Investment in Deer 1,900,000
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Part III. General journal entry for the purchase of Carnac's net assets:
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Unformatted text preview: Accounts receivable 90,000 Inventory 200,000 Land 25,000 Building 30,000 Equipment 35,000 Patent 10,000 Goodwill 5,000 Current liabilities 35,000 Long-term debt 80,000 Cash 280,000 Investment expense 10,000 Cash 10,000 Part IV General journal entry for the purchase of Sublime's net assets: Investment Expense 5,000 Cash 5,000 Accounts receivable 180,000 Inventory 200,000 Land 25,000 Building-net 30,000 Equipment-net 35,000 Patent rights 10,000 Current liabilities 25,000 Long-term debt 90,000 Cash 320,000 Gain from Bargain Purchase 45,000...
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Solution to Chapter 1 Sample Quiz - Accounts receivable...

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