Question

Wond Ping pa 00c Vay Tune awely adverng pape Ahe e of the acon, Vay Tune balnce sheet repoted wan $110,000 The tar market value of Valey Tbuners aes wan S0.000 aet of 00 n e of 0 The tor matet va of vaey Tus nets Read the ments Requirement 1. How much good dd Wand Pubhing purchase as part of the acquition of Valey Trbune Purchase price to acqure Vley Trbune Market value of ey Tbune's an Less Market vale of Vey Tbuns abes Less Market vae of Vey Trbun's net asets Goodw Requirement 2. Joumale Wond Pubhing's acquton of Valey Trbune (Record debits fist then credts Seled the explanabon on the last ine of the journal entry table) Date Accounts and Explanation Debit Credit O Reuements 1. How much goodw did Word Pubshing purchase as part of the acqustion of Valey Tbune 2. Journalze Word Pushngs acquton of Valey Tbune Print Done Choose from any st or enter any munber in the input flds and then continue to the next uestion

Answer 1

Req 1
Purchase Price to acquire Valley Tribune		$2,30,000
Market Value of Valley Tribune's Assets	$1,10,000
Less: Market Value of Valley Tribune's Liabilities	$80,000
Less: Market Value of Valley Tribune's Net Assets		$30,000
Goodwill		$2,00,000

Req 2
Date	Accounts and Explanation	Debit	Credit
	Assets Dr	$1,10,000
	Goodwill Dr	$2,00,000
	To Liabilities		$80,000
	To Cash		$2,30,000
	(Being acquisition of Valley Tribune by paying $230000.)