On January 1, July 1, and December 31, 20X5, a condensed trial balance for Nelson Company showed the following debits and (credits):
Assume that, on July 1, 20X5, Systems Corporation purchased the net assets of Nelson Company for $750,000 in cash. On this date, the fair values for certain net assets were:
Current Assets
$280,000
Plant and Equipment (remaining life of 10 years)600,000
Nelson Company's books were NOT closed on June 30, 20X5.
For all of 20X5, Systems' revenues and expenses were $1,500,000 and $1,200,000, respectively.
Required:
(1)Record the entry on Systems' books for the July 1, 20X5 purchase of Nelson.

Question

On January 1, July 1, and December 31, 20X5, a condensed trial balance for Nelson Company showed the following debits and (credits):  
Assume that, on July 1, 20X5, Systems Corporation purchased the net assets of Nelson Company for $750,000 in cash. On this date, the fair values for certain net assets were:
Current Assets
$280,000
Plant and Equipment (remaining life of 10 years)600,000
Nelson Company's books were NOT closed on June 30, 20X5.
For all of 20X5, Systems' revenues and expenses were $1,500,000 and $1,200,000, respectively.
Required:
(1)Record the entry on Systems' books for the July 1, 20X5 purchase of Nelson.

Quizplus · Accepted Answer

The Answer of On January 1, July 1, and December 31, 20X5, a condensed trial balance for Nelson Company showed the following debits and (credits):  
Assume that, on July 1, 20X5, Systems Corporation purchased the net assets of Nelson Company for $750,000 in cash. On this date, the fair values for certain net assets were:
Current Assets
$280,000
Plant and Equipment (remaining life of 10 years)600,000
Nelson Company's books were NOT closed on June 30, 20X5.
For all of 20X5, Systems' revenues and expenses were $1,500,000 and $1,200,000, respectively.
Required:
(1)Record the entry on Systems' books for the July 1, 20X5 purchase of Nelson.

On January 1, July 1, and December 31, 20X5, a Condensed