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This short exercise demonstrabes the simlarity and the difference between two ways to acquire plant assets Q (Click the icon to vies the cases) Compore the balances in al the accounts afher making both sets of entres. Ne the account balances the same or different? Journalize the vansections for cases A and 8 . (Pucord debis frst; Fen credis. Exclude explarations fom any journal entries) Lefis begin with case A - Recerd the issuance of the common slock: More info Case A - issue stock and buy the assets in separate transactions. Ashioy Company issued 20,000 shares of is $25 par common stock is cash of $700,000 in a separane the teo tranactions. Case B - Issue stbck to acguire the assefs in a sibgle baviaction A they Compary issued 20.000 shares of ts $25 par common stock to acqure a bulding with a manket value of This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. (2) (Click the icon to view the cases.) Compare the balances in all the accounts after making both sets of entries. Are the account balances the same or different? More info Case A - Issue stock and buy the assets in separate transactions: Ashley Company issued 20,000 shares of its $25 par common stock for cash of $700,000. In a separate transaction, Ashley used the cash to purchase a buliding for $625,000 and equipment for $75,000. Journalize the two transactions. Case B - Issue stock to acquire the assets in a single transaction: Ashley Company issued 20,000 shares of its $25 par common stock to acquire a building with a market value of $625,000 and equipment with a market value of $75,000. Journalize this transaction

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