On April 25, 2010, Bullseye Company purchased all of the outstanding common stock of Vista Company, paying $14,000,000. The book values and fair values of Vista's assets and liabilities acquired are shown below in dollar amounts:
|
Accounts
|
Book Value
|
Fair Value
|
|
Accounts Receivables
|
$1,900,000
|
$1,725,000
|
|
Inventories
|
$2,800,000
|
$4,000,000
|
|
Accounts Payable
|
$2,000,000
|
$2,000,000
|
|
Property, Plant and Equipment
|
$8,000,000
|
$12,625,000
|
|
Bonds Payable
|
$4,600,000
|
$4,225,000
|
Using Excel, prepare the journal entry to record the acquisition by Bullseye Company.