How the transaction affected the basic accounting equation

Reference no: EM131408441

Recently, Johnson & Johnson purchased the outstanding common stock of several businesses for $2.8 billion in cash. The purchase price exceeded the estimated fair market value of the acquired assets by $1.8 billion, and Johnson & Johnson assumed liabilities of $323 million.

REQUIRED:

Re-create the journal entry for the acquisitions, and describe how the transaction affected the basic accounting equation.

Reference no: EM131408441

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