Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the logan company is purchasing the nylon sail...

The Logan Company is purchasing the Nylon Sail...

70.2K

Verified Solution

Question

Accounting

image
image
The Logan Company is purchasing the Nylon Sail Company. The Nylon Sail Company's Balance Sheet information on June 30, 2020 is as follows: 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 Bullding $515,800 Patent $82,300 Trademark $15,000 Required: 1. Prepare the journal entries on Logan Company's books to record the purchase. 2. Prepare the journal entry on Nylon Sail Company's books to record the sale. 3. Prepare a list of the specific components of the gain for Nylon Sail Company. 4. Prepare the Balance Sheet for Nylon Sail Company as of June 30,2020 immediately after the sale to Logan Company

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Balance Sheet Data                 Long-Term Debt               80,000,000                 Preferred Stock                20,000,000                 Common Equity                20,000,000 Number of shares of Common                 1,500,000                             Price per share Common              $42 Number of shares of Preferred                     150,000                             Price per share Preferred             $108 Number of...

Electrical Engineering
1.2K views

Create a State-Space Representation of following coupled second order differential equation? Define state vector as X =[x,x',a,a']^T....

Biology
1.2K views

How can embryologic development be used as evidence for evolution A Closely related species have...

Physics
1.2K views

9 If the threshold wavelength for a metal is 6200 A then minimum energy required...

Basic Math
1.2K views

A chameleon is resting quietly on a lanai screen, waiting for an insect to come...

Statistics
1.2K views

exclusive Suppose event A occurs with probability occurs with probability 0 06 1t mobnst te...

Statistics
1.2K views

This past semester a professor had a small business calculus section The students in the...

Accounting
1.2K views

An investment trust fund is used to report the net position available to the: Multiple...

Accounting
1.2K views

Detailed explanation of how cost accounting concept is or could be used at Starbucks. What...

Accounting
1.2K views

please solve. thank you FULL SCREEN PINTER VERSION BACK Question...

Accounting
1.2K views

MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed...

Accounting
1.2K views

solution for number 1 to 6 Credit Debit 11,943,...