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This short exercise demonstrates the similarity and the difference between two ways to acquire plant...

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Accounting

This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets.
(i)(Click the icon to view the cases.)
Compare the balances in all the accounts after making both sets of entries. Are the account balances the same or different?
Journalize the transactions for cases A and B.(Record debits first, then credits. Exclude explanations from any journal entries.)
Let's bi
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Case A- Issue stock and buy the assets in separate transactions:
Ashley Company issued 20,000 shares of its $1 par common stock for cash of $700,000. In a
separate transaction, Ashley used the cash to purchase a building for $600,000 and equipment for $100,000.
Journalize the two transactions.
Case B- Issue stock to acquire the assets in a single transaction:
Ashley Company issued 20,000 shares of its $1 par common stock to acquire a building with a market value of
$600,000 and equipment with a market value of $100,000. Journalize this transaction.
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