Poplar Corp Fair Values on the Date of Acquisition If Poplar Paid $300,000 What Journal Entries Would Be Recorded

Essay

Poplar Corp. acquires the net assets of Sapling Company, which has the following balance sheet:
$\begin{array}{lr}\text { Accounts Receivable } & \$ 50,000 \\\text { Inventory } & 80,000 \\\text { Equipment, Net } & 50,000 \\\text { Land \& Building, Net } & 120,000 \\\text { Total Assets } & \$ 300,000\\\\\text { Bonds Payable } & \$ 90,000 \\\text { Common Stock } & 100,000 \\\text { Retained Eamings } & 110,000 \\\text { Total Liabilities and Stockhol ders' Equity } & \$ 300,000\end{array}$ Fair values on the date of acquisition:
$\begin{array}{lr}\text { Accounts Receivable } & \$ 50,000 \\\text { Inventory } & 100,000 \\\text { Equipment } & 30,000 \\\text { Land \& Building } & 180,000 \\\text { Customer List } & 30,000 \\\text { Bonds Payable } & 100,000 \\\text { Acqui sition costs: } & \$ 10,000\end{array}$ If Poplar paid $300,000 what journal entries would be recorded by both Poplar Corp. and Sapling Company?