On May 31, 2021, Armstrong Company paid $3,500,000 to acquire Hall Corporation. Hall reported the...
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Accounting
On May 31, 2021, Armstrong Company paid $3,500,000 to acquire Hall Corporation. Hall reported the following balance sheet at the time of the acquisition:
Current assets $ 900,000 Current liabilities $ 600,000
Total assets $3,600,000 stockholders equity $3,600,000
It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At May 31, 2021, Hall reports the following balance sheet information:
Current assets $ 800,000
Noncurrent assets (including goodwill recognized in purchase) 2,400,000
Current liabilities (700,000)
Long-term liabilities (500,000)
Net assets $2,000,000
Instructions:
Prepare the May 31, 2021, journal entry for Armstrong.
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