Writing the journal entry and analyze it

Reference no: EM132734780

Question - Writing the journal entry and analyze it by cpa way.

Ray used the money $15000 to help finance a $120,000 acquisition of common shares in Spring Farm (SF) that produces blueberry, strawberry, peach and cherry. TQF will now own 25% of SF. SF will be a primary supplier of those fruits mentioned above for TQF's new product line. Ray explained: "this vertical integration is critical for the growth of our business! Otherwise I will have to pay about $10,000 more if I buy from other suppliers. This deal is a big help with cash flow, and it also helps us to secure the supply which can be volatile depending on the weather."

Reference no: EM132734780

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