Essay
Parrot Incorporated purchased the assets and liabilities of Sparrow Company at the close of business on December 31, 2011.Parrot borrowed $2,000,000 to complete this transaction, in addition to the $640,000 cash that they paid directly.The fair value and book value of Sparrow's recorded assets and liabilities as of the date of acquisition are listed below.In addition, Sparrow had a patent that had a fair value of $50,000.
Required:
1.Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow survives as a separate legal entity.
2.Prepare Parrot's general journal entry for the acquisition of Sparrow, assuming that Sparrow will dissolve as a separate legal entity.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: On January 2, 2010 Carolina Clothing issued
Q6: In reference to international accounting for goodwill,U.S.companies
Q7: Pony acquired Spur Corporation's assets and liabilities
Q8: Balance sheet information for Sphinx Company at
Q9: Pali Corporation exchanges 200,000 shares of newly
Q10: Goodwill arising from a business combination is<br>A)charged
Q11: According to FASB Statement No.141,liabilities assumed in
Q28: Which of the following is not a
Q28: In a business combination,which of the following
Q30: Pitch Co.paid $50,000 in fees to its