MontyCorporation purchased the net assets of Wildhorse Corporation on January 2, 2020 for $ 621,600 and also paid $ 22,200 indirect acquisition costs. Wildhorse's balance sheet on January 1, 2020 was as follows:Accounts receivable-netInventoryLandBuilding-netEquipment-netTotal assets$ 199,800399,60044,40066,60088,800$799,200Current liabilitiesLong term debtCommon stock ($1 par)Paid-in capitalRetained earningsTotal liab. & equity$ 77,700177,60022,200477,30044,400$799,200Fair values agree with book values except for inventory, land, and equipment, which have fair values of $ 439,600, $ 54,400 and $78,800, respectively. Wildhorse has patent rights valued at $ 22,200. (b)Assume Monty Corporation purchased the net assets of Wildhorse Corporation for $561,600 rather than $621,600, prepare thegeneral journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Account Titles and ExplanationDebitCredit

It has been given in the question that Monty Corporation has purchased the net assets of the…

Assume Monty Corporation purchased the net assets of Wildhorse Corporation for $561,600 rather than $621,600, prepare the general journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation < > > > Debit Credit

Assume Monty Corporation purchased the net assets of Wildhorse Corporation for $561,600 rather than $621,600, prepare the general journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation < > > > Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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