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Purchase of a Company Landers Inc. is considering purchasing J&B Properties, which has the following assets and liabilities

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June 8th, 2024

Purchase of a CompanyLanders Inc. is considering purchasing J&B Properties, which has the following assets and liabilities.CostFair Market ValueAccounts receivable$ 210,000$ 200,000Inventory250,000260,000Prepaid insurance12,00012,000Buildings and equipment (net)88,000168,000Accounts payable(130,000)(130,000)Net assets$ 430,000$ 510,0001. Make the journal entry necessary for Landers Inc. to record the purchase if the purchase price is $650,000 cash.2. Assume that the purchase price is $320,000 cash. Make the journal entry necessary to record the purchase.

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