This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. (Click the

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This Short Exercise Demonstrates The Similarity And The Difference Between Two Ways To Acquire Plant Assets Click The 1 (40.68 KiB) Viewed 29 times

This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. (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? Journalize the transactions for cases A and B. (Record debits first, then credits. Exclude explanations from any joumal entries.) Let's begin with case A - Record the issuance of the common stock. Journal Entry Accounts Case A - Record the purchase of the building and equipment. Journal Entry Accounts Case B - Record the issuance of the common stock acquire assets The account balances are Journal Entry Accounts Debit Debit Debit Credit Credit Credit Compare the balances in all accounts after making both sets of entries. Are the account balances similar or different? More info Case A - Issue stock and buy the assets in separate transactions: Atar Company issued 20,000 shares of its $30 par common stock for cash of $756,000. In a separate transaction, Atar used the cash to purchase a building for $548,000 and equipment for $208,000. Journalize the two transactions. Case B - Issue stock to acquire the assets in a single transaction: Atar Company issued 20,000 shares of its $30 par common stock to acquire a building with a market value of $548,000 and equipment with a market value of $208,000. Journalize this transaction. Print Done - X