Advances accounting

On January 1, 201X, Alaska Corporation acquired Mercantile Corporation's net assets by paying $160,000 in cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below:

(Source: Baker, Christensen, & Cottrell, 2012)

Prepare the journal entry to record the acquisition of Mercantile Corporation.

Submit your responses in MSWord as one document. Label each section clearly. For written answers, please make sure your responses are well written, adhere to CSU-Global APA formatting and writing expectations, and have the proper citation, if needed.

Barb.  you can work this out.  they paid 160,000.  how much is retained earnings and common stock? the cash replaces this  how much is left over? Dr Ed

Debit:

    cash

    a/r

    assets

    good will                         17,000

credit 

       a/p                                               xxx

       note payble                                 xxx

       cash                                           160,000

i think this will lead you in the direction.   

Dr Ed