Homework Answers
| Calculation of Goodwill | Value ($) | ||
| Assets Value | 5,70,000 | ||
| Benefit of tax for carry over loss | |||
| (400000*30%) | 1,20,000 | ||
| A | Total Assets Value | 6,90,000 | |
| B | Current Liabilities | 60,000 | |
| Net Assets value (A-B) | 6,30,000 | ||
| C | Cost of acquisition | 9,00,000 | |
| Goodwill (C-A) | 2,70,000 | ||
| Journal Entry | Dr | Cr | |
| $ | $ | ||
| Investment | 6,30,000 | ||
| Goodwill | 2,70,000 | ||
| Cash | 9,00,000 |
Add Answer to:
Exercise 7 (LO 5) Tax loss carryover. Lake Company had the following balance sheet on December...
Amber Corporation reported the following summarized balance sheet data on December 31, 2018: Assets $ 700,000...
Amber Corporation reported the following summarized balance sheet data on December 31, 2018: Assets $ 700,000 Liabilities $ 100,000 Common Stock 400,000 Retained Earnings 200,000 Total $ 700,000 Total $ 600,000 On January 1, 2019, Purple Company acquired 100 percent of Amber’s stock for $600,000. At the acquisition date, the book values and fair values of Amber’s assets and liabilities were equal. Amber reported net income of $70,000 for 20X7 and paid dividends of $40,000. Required: a. Give the journal...
Nineteen Company had the following summarized balance sheet on December 31 of the current year: ...
Nineteen Company had the following summarized balance sheet on December 31 of the current year: Assets Cash $250,000 Accounts receivable 300,000 Inventory 350,000 Property and plant (net) 500,000 Total $1,400,000 Liabilities and Equity Bonds payable $ 600,000 Common stock, $5 par 300,000 Paid-in capital in excess of par 400,000 Retained earnings 100,000 Total $1,400,000 The fair value of the inventory and property and plant is $500,000 and $750,000, respectively. Bonds payable has a fair...
The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year)....
The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash $ 100,000 Accounts receivable 200,000 Inventory 150,000 Furniture and fixtures (net) 120,000 Total assets $ 570,000 Liabilities and Shareholders’ Equity Accounts payable (for merchandise) $ 150,000 Notes payable 160,000 Interest payable 4,000 Common stock 110,000 Retained earnings 146,000 Total liabilities and shareholders’ equity $ 570,000 Transactions during 2021 (current year) were as follows:...
P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent...
P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent assets .............. $ 500,000 4,000,000 ........ Current liabilities....... Long-term liabilities .... Common stock. ....... Retained earnings ....... Total liabilities and equity.... $ 400,000 2,800,000 2,500,000 (1,200,000) $4,500,000 Total assets ....... $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not ad- equately reflect the reduced earning power of the assets. To give its balance sheet a...
Presented below is balance sheet information regarding Sargent Corporation as of December 31, 2020. Current assets:...
Presented below is balance sheet information regarding Sargent Corporation as of December 31, 2020. Current assets: cash and cash equivalents, $150,000; accounts receivable, $170,000; allowance for doubtful accounts, $10,000; inventories, $200,000 cost, $180,000, net realizable value. Fixed assets: buildings, $1,040,000 less $360,000 accumulated depreciation; equipment, $450,000 less $180,000 accumulated depreciation; land $500,000; land held for future use, $270,000. Current liabilities: accounts payable, $150,000; notes payable, $80,000; income taxes payable, $40,000; unearned rent revenue, $5,000. Other liabilities: long-term notes payable issued...
E1-12 Goodwill Recognition Spur Corporation reported the following balance sheet amounts on December 31, 20X1; Fair...
E1-12 Goodwill Recognition Spur Corporation reported the following balance sheet amounts on December 31, 20X1; Fair Value Historical Cost $ 50,000 100,000 40,000 400,000 (150,000) $ 40,000 Balance Sheet Item Cash &Receivables Inventory Land 150,000 30,000 350,000 Plant & Equipment Less: Accumulated Depreciation Patent 130,000 $700,000 $440,000 Total Assets $ 80,000 $85,000 Accounts Payable 200,000 Common Stock 20,000 Additional Paid-In Capital Retained Earnings 140,000 Total Liabilities & Equities $440,000 33 Intercorporate Acquisitions and Investments in Other Entities Chapter 1 Required...
The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year)....
The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $185,000 320,000 270,000 205,000 $980,000 $ 250,000 260,000 7,800 100,000 362,200 $980,000 Transactions during 2021 (current year) were as follows: 1. Sales to...
Exercise 3-7 Balance sheet preparation; errors [LO3-2, 3-3) The following balance sheet for the Los Gatos...
Exercise 3-7 Balance sheet preparation; errors [LO3-2, 3-3) The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors LOS GATOS CORPORATION Balance Sheet At December 31, 2018 AssetS Cash Accounts receivable Inventories Machinery (net) Franchise (net) $ 70,000 125,000 70,000 135,000 45, 000 $445,000 Total assets Liabilities and Shareholders' Equity Accounts payable $ 80,000 Allowance for uncollectible accounts 20,000 85,000 125,000 135,000 $445,000 Note payable Bonds...
Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end...
Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current assets Property, plant, and equipment Intangible assets Current liabilities Long-term liabilities Common stock Retained earnings Current Year $2,500,000 5,600,000 1,900,000 2,000,000 3,400,000 920,000 3,680,000 Previous Year $1,840,000 6,072,000 1,288,000 1,380,000 3,680,000 920,000 3,220,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 balance sheets of Allen...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 balance sheets of Allen Corporation and Benson Corporation, immediately prior to a business combina- tion. The fair values of Benson's reported net assets equal their book values, and previously unreported identifiable intangible assets have a fair value of $200,000. Allen Corp. Benson Corp Cash.. . $1.000,000 600,000 1,200,000 50,000 150,000 400,000 Total assets Current liabilities. $2,800,000 $600,000 . .. . . 300,000 600,000 200,000 900,000 800,000 $100,000 250,000...
P15.14 Quasi-Reorganization The Hassani Corporation has the following balance sheet: LO 5 Current assets ................. Noncurrent assets .............. $ 500,000 4,000,000 ........ Current liabilities....... Long-term liabilities .... Common stock. ....... Retained earnings ....... Total liabilities and equity.... $ 400,000 2,800,000 2,500,000 (1,200,000) $4,500,000 Total assets ....... $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not ad- equately reflect the reduced earning power of the assets. To give its balance sheet a...
E1-12 Goodwill Recognition Spur Corporation reported the following balance sheet amounts on December 31, 20X1; Fair Value Historical Cost $ 50,000 100,000 40,000 400,000 (150,000) $ 40,000 Balance Sheet Item Cash &Receivables Inventory Land 150,000 30,000 350,000 Plant & Equipment Less: Accumulated Depreciation Patent 130,000 $700,000 $440,000 Total Assets $ 80,000 $85,000 Accounts Payable 200,000 Common Stock 20,000 Additional Paid-In Capital Retained Earnings 140,000 Total Liabilities & Equities $440,000 33 Intercorporate Acquisitions and Investments in Other Entities Chapter 1 Required...
The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year). KORVER SUPPLY COMPANY Balance Sheet At December 31, 2020 Assets Cash Accounts receivable Inventory Furniture and fixtures (net) Total assets Liabilities and Shareholders' Equity Accounts payable (for merchandise) Notes payable Interest payable Common stock Retained earnings Total liabilities and shareholders' equity $185,000 320,000 270,000 205,000 $980,000 $ 250,000 260,000 7,800 100,000 362,200 $980,000 Transactions during 2021 (current year) were as follows: 1. Sales to...
Exercise 3-7 Balance sheet preparation; errors [LO3-2, 3-3) The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors LOS GATOS CORPORATION Balance Sheet At December 31, 2018 AssetS Cash Accounts receivable Inventories Machinery (net) Franchise (net) $ 70,000 125,000 70,000 135,000 45, 000 $445,000 Total assets Liabilities and Shareholders' Equity Accounts payable $ 80,000 Allowance for uncollectible accounts 20,000 85,000 125,000 135,000 $445,000 Note payable Bonds...
Vertical Analysis of Balance Sheet Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follow: Current assets Property, plant, and equipment Intangible assets Current liabilities Long-term liabilities Common stock Retained earnings Current Year $2,500,000 5,600,000 1,900,000 2,000,000 3,400,000 920,000 3,680,000 Previous Year $1,840,000 6,072,000 1,288,000 1,380,000 3,680,000 920,000 3,220,000 Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 balance sheets of Allen Corporation and Benson Corporation, immediately prior to a business combina- tion. The fair values of Benson's reported net assets equal their book values, and previously unreported identifiable intangible assets have a fair value of $200,000. Allen Corp. Benson Corp Cash.. . $1.000,000 600,000 1,200,000 50,000 150,000 400,000 Total assets Current liabilities. $2,800,000 $600,000 . .. . . 300,000 600,000 200,000 900,000 800,000 $100,000 250,000...
Most questions answered within 3 hours.
-
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 44 minutes ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 37 minutes ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 1 hour ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 1 hour ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 2 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 3 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 3 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 2 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 3 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 3 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 4 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 4 hours ago