Telecom Inc Has Decided to Purchase the Shares of Intron

question 16

Essay

Telecom Inc has decided to purchase the shares of Intron Inc. for $300, 000 in Cash on July 1, 2018. On the date, the balance sheets of each of these companies were as follows: $$\begin{array} { | l | l | l | } \hline & \text { Telecom Inc } & \text { Intron Inc } \\\hline & & \\\hline \text { Cash and Short-Term Securities } & \$ 920,000 & \$ 200,000 \\\hline \text { Inuentory } & \$ 150,000 & \$ 20,000 \\\hline \text { Plant and Equipment (net) } & \$ 330,000 & \$ 180,000 \\\hline \text { Total Assets } & \$ 1,400,000 & \$ 400,000 \\\hline & & \\\hline \text { Current Liabilities } & \$ 420,000 & \$ 90,000 \\\hline \text { Bonds Payable } & \$ 700,000 & \$ 200,000 \\\hline \text { Common Shares } & \$ 180,000 & \$ 60,000 \\\hline \text { Retained Earnings } & \$ 100,000 & \$ 50,000 \\\hline \text { Total Labilities and Equiby } & \$ 1,400,000 & \$ 400,000 \\\hline\end{array}$$ On that date, the fair values of Intron's assets and liabilities were as follows:
$$\begin{array} { | l | l | } \hline \text { CashiShort-Term Securities } & \$ 200,000 \\\hline \text { Inventory } & \$ 15,000 \\\hline \text { Plant and Equipment (net) } & \$ 250,000 \\\hline \text { Current Liabilities } & \$ 90,000 \\\hline \text { Bonds Payable } & \$ 210,000 \\\hline\end{array}$$ Required:
Assume that Intron's assets and liabilities were purchased instead of its shares for $300,000. Prepare the journal entry to record this purchase.

---

Definitions:

Microdrip

A type of drip set for an intravenous infusion that delivers a small amount of fluid, typically 60 drops per ml, used for precise fluid delivery.

Y Tubing

A type of medical tubing that splits a single input stream into two outputs, resembling the letter "Y."

Gravity Infusion

A method of delivering fluids into the body using the force of gravity, typically through intravenous therapy.

Blood Administration

The process of transfusing blood or blood products into an individual's circulatory system.