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.
1 answer