On January 1, July 1, and December 31, 2016, a condensed trial balance for Nelson Company showed the following debits and (credits):
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Current Assets Plant and Equipment (net) Current Liabilities Long-Term Debt Common Stock Other Paid-in Capital Retained Earnings, January 1 Dividends Declared Revenues Expenses 01/01/16$200,000500,000(50,000)(100,000)(150,000)(100,000)(300,000)07/01/16$260,000510,000(70,000)(100,000)(150,000)(100,000)(300,000)(400,000)350,00012/31/16$340,000510,000(60,000)(100,000)(150,000)(100,000)(300,000)10,000(900,000)750,000
Assume that, on July 1, 2016, Systems Corporation purchased the net assets of Nelson Company for $750,000 in cash.On this date, the fair values for certain net assets were:
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Current Assets Plant and Equipment (remaining life of 10 years) $280,000600,000 Nelson Company's books were NOT closed on June 30, 2016.
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For all of 2016, Systems' revenues and expenses were $1,500,000 and $1,200,000, respectively.
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Required:
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(1) Record the entry on Systems’ books for the July 1, 2016 purchase of Nelson.
Definitions:
Extract Data
The process of retrieving data from a database, document, or file for further use or analysis.
Analyze Group
A collective effort focusing on the examination and interpretation of data sets to identify patterns, test hypotheses, or determine relationships.
Critical Path
The longest sequence of activities in a project plan which must be completed on time for the project to complete on due date.
Project Management
The discipline of planning, executing, and overseeing resources to achieve specific goals within a defined timeline and budget.