On June 30,2013,Stampol Company Ceased Operations and All of Their

question 31

Essay

On June 30,2013,Stampol Company ceased operations and all of their assets and liabilities were purchased by Postoli Incorporated.Postoli paid $40,000 in cash to the owner of Stampol,and signed a five-year note payable to the owners of Stampol in the amount of $200,000.Their closing balance sheets as of June 30,2013 are shown below.In the purchase agreement,both parties noted that Inventory was undervalued on the books by $10,000,and Pistoli would also take possession of a customer list with a fair value of $18,000.Pistoli paid all legal costs of the acquisition,which amounted to $7,000.
Required:
1.Prepare the journal entry Postoli would record at the date of acquisition.
2.Prepare the journal entry Stampol would record at the date of acquisition.

---

Definitions:

NMR Peaks

The visible peaks in a nuclear magnetic resonance spectrum, each corresponding to a different chemical environment of nuclei in a molecule.

Nitrogen-Containing

Refers to molecules or moieties that include one or more nitrogen atoms within their structure.

Spectral Data

Information obtained from the analysis of the spectrum of a compound, which can reveal properties such as structure and composition.

Reaction

A process by which substances interact to form new products, which may involve physical state and chemical composition changes.