On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).
On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows. Cash $38,100 Accounts payable $160,000 Accounts Receivable 67,500 Stockholders' equity 165,800 Inventory 75,800 $325,800 Land 29,400 Buildings (net) 55,200 Equipment (net) 52,200 Copyrights 7,600 $325,800 The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and copyrights (worth $11,300).
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 15E: Investments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a...
Related questions
Question
![On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable
to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows.
Cash
$38,100
Accounts payable
$160,000
Accounts Receivable
67,500
Stockholders' equity
165,800
Inventory
75,800
$325,800
Land
29,400
Buildings (net)
55,200
Equipment (net)
52,200
Copyrights
7,600
$325,800
The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and
copyrights (worth $11,300).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc1576e9-c849-48ce-8450-6aba7a1020f2%2Ffb5ea669-9577-4bd2-b1ae-f4abc2b6ae2c%2Fpj5bzia_processed.png&w=3840&q=75)
Transcribed Image Text:On July 1, 2020, Bridgeport Corporation purchased Johnson Company by paying $189,700 cash and issuing a $64,500 note payable
to Steve Johnson. At July 1, 2020, the balance sheet of Johnson Company was as follows.
Cash
$38,100
Accounts payable
$160,000
Accounts Receivable
67,500
Stockholders' equity
165,800
Inventory
75,800
$325,800
Land
29,400
Buildings (net)
55,200
Equipment (net)
52,200
Copyrights
7,600
$325,800
The recorded amounts all approximate current fair values except for land (worth $45,400), inventory (worth $94,900), and
copyrights (worth $11,300).
![Prepare the July 1 entry for Bridgeport Corporation to record the purchase. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc1576e9-c849-48ce-8450-6aba7a1020f2%2Ffb5ea669-9577-4bd2-b1ae-f4abc2b6ae2c%2Fjuq2ze2_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the July 1 entry for Bridgeport Corporation to record the purchase. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
Credit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning