Homework Answers
| 1. Goodwill [Refer working note] | $1,030,000 | |
| 2. Journal entry to record the acquisition of Pioneer equipment rentals | ||
| Account Titles and Explanation | Debit | Credit |
| Accounts receivable | $480,000 | |
| Buildings | $4,630,000 | |
| Equipment | $210,000 | |
| Goodwill [Refer working note] | $1,030,000 | |
| Accounts Payable | $920,000 | |
| Cash | $5,430,000 | |
| (To record the acquisition of Pioneer equipment rentals) | ||
.
.
| Working note - Calculation of gain (or) loss on acquisition | |
| Purchase price | $5,430,000 |
| Less: Fair value of net assets acquired [Assets - Liabilities] | ($4,400,000) |
| Loss on acquisition (Goodwill) | $1,030,000 |
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Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased...
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock...
Problem 7-3B Calculate and record goodwill (LO7-2)
Northern Equipment
Corporation purchased all the outstanding common stock of Pioneer
Equipment Rental for $5,430,000 in cash. The book values and fair
values of Pioneer’s assets and liabilities were:
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 640,000 3,990,000 120, eee (860, 980) $ 3,890,000 Fair value $ 540, eee 4,690,000 210, eee (860,000) $4,588,888 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Re...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
i just need the answer to second part. I don't know what else I have to add to journal entry. Problem 7-3B Calculate...
i just need the answer to second part. I don't know what else
I have to add to journal entry.
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 700,000 4,050,000 120,000 (800,000) $4,070,000 Fair Value $ 600,000 4,750,000 210,000 (800,000) $4,760,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3A Calculate and record goodwill (LO7-2) Fresh Cut Corporation purchased all the outstanding common stock of...
Problem 7-3A Calculate and record goodwill (LO7-2) Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,800,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Fair Value $ 1,000,000 9,300,000 1,100,000 (1,500,000) (1,500,000) 9,900,000 Book Value 1,200,000 7,900,000 180,000 Accounts Receivable Equipment Patents Notes Payable $7,780,000 Net assets Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 680,000 4,030,000 100,000 (820,000) $3,990,000 Fair Value $ 580,000 4,730,000 190,000 (820,000) $4,680,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill
Check my work 17 Required information Problem 7-6B Record amortization and prepare the intangible assets section...
Check my work 17 Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) (The following information applies to the questions displayed below.) points The following information relates to the intangible assets of Lettuce Express: eBook Print a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,510,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,359,000. b. Included in the assets purchased from Farmers Produce...
Check my work The Bronco Corporation exchanged land for equipment. The land had a book value...
Check my work The Bronco Corporation exchanged land for equipment. The land had a book value of $136,000 and a fair value of $182,000. Bronco paid the owner of the equipment $26,000 to complete the exchange which has commercial substance 10 points Required 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange. Complete this question by entering your answers in the tabs below eBook Print Required 1 Required 2 What is...
Required information Exercise 7-17A Record the sale of equipment (LO7-6) The following information applies to the ques...
Required information Exercise 7-17A Record the sale of equipment (LO7-6) The following information applies to the questions displayed below.] Abbott Landscaping purchased a tractor at a cost of $27,000 and sold it three years later for $14,40o. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,500 residual value. Tractors are included in the Equipment account Exercise 7-17A Part 1 Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) The following information...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) The following information applies to the questions displayed below.] The following information relates to the Intangible assets of Lettuce Express: a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1.590,000 In cash. The fair value of the Identifiable net assets of Farmers Produce was $1,431,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of...
Problem 7-3B Calculate and record goodwill (LO7-2)
Northern Equipment
Corporation purchased all the outstanding common stock of Pioneer
Equipment Rental for $5,430,000 in cash. The book values and fair
values of Pioneer’s assets and liabilities were:
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 640,000 3,990,000 120, eee (860, 980) $ 3,890,000 Fair value $ 540, eee 4,690,000 210, eee (860,000) $4,588,888 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
i just need the answer to second part. I don't know what else
I have to add to journal entry.
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 700,000 4,050,000 120,000 (800,000) $4,070,000 Fair Value $ 600,000 4,750,000 210,000 (800,000) $4,760,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3A Calculate and record goodwill (LO7-2) Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,800,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Fair Value $ 1,000,000 9,300,000 1,100,000 (1,500,000) (1,500,000) 9,900,000 Book Value 1,200,000 7,900,000 180,000 Accounts Receivable Equipment Patents Notes Payable $7,780,000 Net assets Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 680,000 4,030,000 100,000 (820,000) $3,990,000 Fair Value $ 580,000 4,730,000 190,000 (820,000) $4,680,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill
Check my work 17 Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) (The following information applies to the questions displayed below.) points The following information relates to the intangible assets of Lettuce Express: eBook Print a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,510,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,359,000. b. Included in the assets purchased from Farmers Produce...
Check my work The Bronco Corporation exchanged land for equipment. The land had a book value of $136,000 and a fair value of $182,000. Bronco paid the owner of the equipment $26,000 to complete the exchange which has commercial substance 10 points Required 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange. Complete this question by entering your answers in the tabs below eBook Print Required 1 Required 2 What is...
Required information Exercise 7-17A Record the sale of equipment (LO7-6) The following information applies to the questions displayed below.] Abbott Landscaping purchased a tractor at a cost of $27,000 and sold it three years later for $14,40o. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,500 residual value. Tractors are included in the Equipment account Exercise 7-17A Part 1 Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No...
Required information Problem 7-6B Record amortization and prepare the intangible assets section (LO7-5) The following information applies to the questions displayed below.] The following information relates to the Intangible assets of Lettuce Express: a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1.590,000 In cash. The fair value of the Identifiable net assets of Farmers Produce was $1,431,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of...
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