Question #5
The Logan Company is purchasing the Nylon Sail Company.
The Nylon Sail Company’s Balance Sheet information on June 30, 2020 is as follows:
Assets
Cash $ 43,600
Accounts Receivable 55,800
Inventories 141,000
Land 95,000
Building, net 368,000
Equipment, net 39,760
Patent 55,000
Trademark 5,000
Total Assets $803,160
Liabilities
Accounts Payable $ 59,750
Stockholders’ Equity
Common Stock $600,000
Retained Earnings 143,410
Total Liabilities and
Stockholder’s Equity $803,160
Logan Company will pay $800,000 cash down, sign and issue a Note Payable to Nylon
Sail Company in the amount of $350,000, and assume the Accounts Payable. All
assets listed in the balance sheet will be acquired by Logan Company at their listed
amounts, with the exception of the following assets which will be acquired at their
agreed fair values as follows:
Inventories $145,000
Land $175,300
Building $515,800
Patent $82,300
Trademark $15,000
Required:
1. I need to do the journal entries on Logan Company’s books to record the purchase.
2. I need to do the journal entry on Nylon Sail Company’s books to record the sale.
3. I need to do a list of the specific components of the gain for Nylon Sail Company.
4. Do the Balance Sheet for Nylon Sail Company as of June 30, 2020
immediately after the sale to Logan Company.
It’s that simple.Pay only when you are satisfied.
Get Personalized Homework Help
Improve Your Grades Today
How It Works
1-Send us your Assignment requirements, attach and deadline for submission.
2-You will get a confirmation from us with a price quote.Pay us and be relax.
3-Your Completed task will be e mailed to you before agreed time.
Submit Your Assignment/Essay/Discussion/Term Paper/Final Exam or CaseStudy Detail
Available 24/7!
Send your academic problems,
Get instant Help only at Writerscampus!