Richard Cook purchased a company with assets of $500,000 and liabilities of $400,000. He paid $150,000...

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Richard Cook purchased a company with assets of $500,000 and liabilities of $400,000. He paid $150,000...

Richard Cook purchased a company with assets of $500,000 and liabilities of $400,000. He paid $150,000 for the company. The journal entry (entries) to record the purchase include a:

Select one:

a. Debit to total assets of $450,000 and a debit to goodwill of $50,000.

b. Debit to total assets of $500,000 and a credit to goodwill of $50,000.

c. Debit to goodwill of $50,000 and a credit to cash of $40,000.

d. Debit to total assets of $500,000 and a debit to goodwill of $50,000.

business accounting

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Answer 1

Answer #1

Answer is option d) Debit to total assets of $500,000 and a debit to goodwill of $50,000. Date General journal Debit Credit $

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Answer 2

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Richard Cook purchased a company with assets of $500,000 and liabilities of $400,000. He paid $150,000...

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