Pony Acquired Spur Corporation's Assets and Liabilities for $500,000 Cash

question 13

Essay

Pony acquired Spur Corporation's assets and liabilities for $500,000 cash on December 31, 2013. Spur dissolved on the date of the acquisition. Spur's balance sheet and related fair values are shown as of that date, below.
Required: Prepare the journal entry recorded by Pony as a result of this transaction.

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Definitions:

Reinforcements

In psychology, any stimulus that strengthens or increases the probability of a specific response.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Erythrocytes

Red blood cells which are responsible for carrying oxygen from the lungs to the body tissues and carbon dioxide as a waste product away.

Blood Platelets

Tiny blood cells that play a critical role in clotting, helping to stop bleeding by clumping and forming plugs in blood vessel injuries.