X Corp. Acquired 100% of common stock of Y Corp. X Corp. assumed acquisition expenses as follows (amounts in $)(2.5 ma
Posted: Sat Feb 19, 2022 2:33 pm
X Corp. Acquired 100% of common stock of Y Corp. X Corp. assumed acquisition expenses as follows (amounts in $)(2.5 marks)
Legal fees 50,000
Accounting fees 30,000
Travel expenses 10,000
Legal fees (stock issue) 20,000
Accounting fees (stock) 15,000
SEC filing fees (stock) 10,000
Prior to the acquisition date, $90,000 have been paid and capitalized to a deferred charges account on the balance sheet. The remaining $45,000 has not been paid or accrued.
Required:
Prepare the journal entry to record the acquisition expenses.
Answer:
Legal fees 50,000
Accounting fees 30,000
Travel expenses 10,000
Legal fees (stock issue) 20,000
Accounting fees (stock) 15,000
SEC filing fees (stock) 10,000
Prior to the acquisition date, $90,000 have been paid and capitalized to a deferred charges account on the balance sheet. The remaining $45,000 has not been paid or accrued.
Required:
Prepare the journal entry to record the acquisition expenses.
Answer: