Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows: BOOK VALUE FAIR VALUE Accounts receivable 240,000 220,000 Inventory 290,000 320,000 Land 960,000 1,508,000 Buildings 1,020,000 1,392,000 Total 2,510,000 3,440,000 Accounts payable 270,000 270,000 Note payable 600,000 600,000 Common stock, $5 par 420,000 Other contributed capital 640,000 Retained earnings 580,000 Total 2,510,000 Required: Prepare the journal entries on the books of Putin Company to record the purchase the assets and assumption of the liabilities of Joni Company assuming that the amount paid was OMR 900,000. Repeat the requirement in (A) assuming that the amount paid was OMR 400,000 except cash.
- Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows:
BOOK VALUE FAIR VALUE
Accounts receivable 240,000 220,000
Inventory 290,000 320,000
Land 960,000 1,508,000
Buildings 1,020,000 1,392,000
Total 2,510,000 3,440,000
Accounts payable 270,000 270,000
Note payable 600,000 600,000
Common stock, $5 par 420,000
Other contributed capital 640,000
Total 2,510,000
Required:
- Prepare the
journal entries on the books of Putin Company to record the purchase the assets and assumption of the liabilities of Joni Company assuming that the amount paid was OMR 900,000.
Repeat the requirement in (A) assuming that the amount paid was OMR 400,000 except cash.
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