This Question: 3 pts I5 of 22 (6 complete) ? Question Help Wondertand, Inc. purc

Question

This Question: 3 pts I5 of 22 (6 complete) ? Question Help Wondertand, Inc. purchased Cheshire Co. for $840,000.The market value of Cheshire's assets and liabilißies at the time of purchase were $970,000 and $280,000 respectively. The jounal entry to record this will include ?A. debltoAsset acoortsfor$970,000, debit to Goodwil S150,000, oedt to Liabities saeo.coo and esot to Cash S840000 O B. debit to Asset accounts for $970,000, credit to Gain on Investments $130,000 and credit to Cash $840,000 O C. debit to Investments for $840,000, credit to Cash $840,000 OD. debit to Investments for $970,000, credit to Cesh $840,000 and credt to Gain on Investment $130,000 Click to select your answer A S D FGHJ KL ption command command option

Explanation / Answer

a) journal entry will be as under

assets a/c dr. 970000

goodwill a/c dr( balance fig) 150000

to liabilities a/c 280000

to cash 840000

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