Don't give answer in image format Whispering Winds Company acquired the assets (except for cash) and assumed the liabilities of Carla Vista Company on January 1,2024, paying $740,000 cash. Carla Vista Company's December 31, 2023, balance sheet, reflecting both book values and fair values,showed:DAccounts receivable (net)InventoryLandBuildings (net)Equipment (net)TotalAccounts payableNote payableCommon stock, $2 par valueOther contributed capitalRetained earningsTotalBook ValueFair Value$85,200$92,000106,000120,900389,000465,500257,000312,800$964.900 $1,156,400120,100172,800$103,000 $103,000200,000200,000173,000249,000239,900$964,900 As part of the negotiations, Whispering Winds Company agreed to pay the former stockholders of Carla Vista Company $193,500 cashif the post-combination earnings of the combined company (Whispering Winds) reached certain levels during 2024 and 2025. The fairvalue of contingent consideration was estimated to be $143,700 on the date of acquisition.(a)Record the journal entry on the books of Pham Company to record the acquisition on January 1, 2024. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter 0 for the amounts List all debit entries before credit entries)Account Titles and ExplanationDateJan. 1.2024DebitCredit

Journal entry records the accounting transactions of a business in a journal book. All the business…

Whispering Winds Company acquired the assets (except for cash) and assumed the liabilities of Carla Vista Company on January 1, 2024, paying $740,000 cash. Carla Vista Company's December 31, 2023, balance sheet, reflecting both book values and fair values, showed:

Whispering Winds Company acquired the assets (except for cash) and assumed the liabilities of Carla Vista Company on January 1, 2024, paying $740,000 cash. Carla Vista Company's December 31, 2023, balance sheet, reflecting both book values and fair values, showed:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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