On May 31, 2006, Combinor Corporation issued $4,000,000 face amount of 20-year, 16% bonds to yield 20%, interest payable each May 31 and November 30, for all the net assets of Combinee Company. Also on May 31, 2006, Combinor paid the following out-of-pocket costs in connection with the combination:
The separate balance sheet of Combinee on May 31, 2006, prior to the business combination included the following:
Prepare journal entries for Combinor Corporation on May 31, 2006, to record the business combination with Combinee Company. Appropriate present value factors are as follows:

Question

On May 31, 2006, Combinor Corporation issued $4,000,000 face amount of 20-year, 16% bonds to yield 20%, interest payable each May 31 and November 30, for all the net assets of Combinee Company. Also on May 31, 2006, Combinor paid the following out-of-pocket costs in connection with the combination:
  The separate balance sheet of Combinee on May 31, 2006, prior to the business combination included the following:
  Prepare journal entries for Combinor Corporation on May 31, 2006, to record the business combination with Combinee Company. Appropriate present value factors are as follows:

Quizplus · Accepted Answer

The Answer of On May 31, 2006, Combinor Corporation issued $4,000,000 face amount of 20-year, 16% bonds to yield 20%, interest payable each May 31 and November 30, for all the net assets of Combinee Company. Also on May 31, 2006, Combinor paid the following out-of-pocket costs in connection with the combination:
  The separate balance sheet of Combinee on May 31, 2006, prior to the business combination included the following:
  Prepare journal entries for Combinor Corporation on May 31, 2006, to record the business combination with Combinee Company. Appropriate present value factors are as follows:

On May 31, 2006, Combinor Corporation Issued $4,000,000 Face Amount