Assignment
MNO acquired STW's net assets. At the time of the acquisition STW's Balance sheet was as follows:
|
Accounts Receivable
|
$140,000
|
|
Inventory
|
80,000
|
|
Equipment, Net
|
40,000
|
|
Building, Net
|
270,000
|
|
Land
|
150,000
|
|
Total Assets
|
$680,000
|
|
|
|
Bonds Payable
|
$100,000
|
|
Common Stock
|
50,000
|
|
Retained Earnings
|
450,000
|
|
Total Liabilities and Stockholders' Equity
|
$600,000
|
Record the entry for the purchase of the net assets of STW at the following cash prices:
a. $800,000
b. $310,000