The Edge Mfg. Company decided to expand further by purchasing the Bell Company

The Edge Mfg. Company decided to expand further by purchasing the Bell Company. The balance sheet of Bell Company as of December 31 2012 was as follows:

Bell Company

Balance Sheet

December 31 2012

AssetsEquities

Cash $112000Accounts Payable $325000

Receivables 460000Common Stock 700000

Inventory 275000 Retained Earnings 837000

Plant Assets (Net)1025000

Total Assets 1862500 Total Equities$1962500

An appraisal indicated thatthe fair market value of the inventory was $375000 and that the fair market value of the plant assets was $1225000. The agreed
purchase price was $2350000 and this amount was paid in cash kto the previous owners of the Bell Company.

prepare the entry for the Edge Company to record the purchase.