Transcribed Image Text: On January 1, 2018, Grand Corp. purchased Minor Co., paying $250,000 cash and issuing a $50,000 note payable. On January 1, 2018, the balance sheet of Minor

Transcribed Image Text: On January 1, 2018, Grand Corp. purchased Minor Co., paying $250,000 cash and issuing
a $50,000 note payable. On January 1, 2018, the balance sheet of Minor Co. was as
follows:
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Minor Company
Balance Sheet
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Assets
Liabilities and Owners’ Equity
$40,000
$55,000
280,000
$335,000
Cash
Notes Payable
Capital
Acc. Receivable
80,000
Inventory
Buildings(net)
Equipment(net)
Patents
Trademarks
120,000
50,000
30,000
5,000
10,000
$335,000
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An appraisal indicated that the fair market value of the receivables was $75,000, and the
fair market value of inventory and buildings were $110,000 and $70,000 respectively.
According to the appraisal, the patents were worthless.
Required: Prepare the journal entry to be record the purchase by Grand Corp.
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