journal entries 347613

60 60000 400000 350000 150000 0 200000 180000 70000 90000 520000 10000 3000 60000 10000 200000 259800 35000 12000 45000 20000 30000 14000 P1 37 Journal Entries Journal entries to record acquisition of Light Steel net assets: Cash Record finder’s fee and transfer costs. Record audit fees and stock registration fees. Cash Accounts Payable Bonds Payable Record merger with Light Steel Company. Goodwill Total a. Balance in investment account, December 31, 20X7 Cumulative earnings since acquisition Cumulative dividends since acquisition Proportion of stock held by True Corporation Total Amount Debited to Investment Account Purchase Amount b. c. d. Merger Expense (1) (2) (3) Deferred Stock Issue Costs The fair value of net assets on January 1, 20X5 is The value assigned to the NCI shareholders on January 1, 20X5 is Amount assigned to noncontrolling interest in the consolidated balance sheet prepared at December 31, 20X7. INSTRUCTION: You are to complete the assignment using the following template. You need to fill in whatever is missing in order to complete the assignment. I have included some check figures for you in order to help P1 37 USE EXCEL TEMPLATE FOR THIS 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: Balance Sheet Item Book Value Fair Value Accounts Receivable $100,000 100,000 Inventory (LIFO basis) 60,000 115,000 Land 50,000 70,000 Building and Equipment Less: Accumulated Depreciation (150,000) Total Assets $520,000 $695,000 Accounts Payable $10,000 $10,000 Bonds Payable Common Stock ($5 par Value) …