Homework Answers
Ans:
Journal entries
| Sr.No | Account Name | Debit ($) | Credit ($ |
| 1. | Land | $100000 | |
| Building | $500000 | ||
| Patent | $50000 | ||
| Cash | $100000 | ||
| Inventory | $220000 | ||
| Goodwill (Balancing figure) | $50000 | ||
| Accounts Payable | $20000 | ||
| Puchase Consideration | $1000000 | ||
| (Being Purchase consideration paid for Net Assets acquired) |
The above Price analysis shows that the purchase price of $1000000 is more than the Fair value of acquired Net Assets, which means the excess price paid is the premium price (goodwill). Here, Goodwill is $50,000
Therefore, $50,000 a premium price (goodwill) describes the price analysis.
Add Answer to:
6. The MJ Air Company purchases the KB Company for a price of $1,000,000, use a...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Exercise 2-11 Relation between Purchase Price, Goodwill, and Negative Goodwill LO 6 The following balance sheets...
Exercise 2-11 Relation between Purchase Price, Goodwill, and Negative Goodwill LO 6 The following balance sheets were reported on January 1, 2019, for Peach Company and Stream Company: Peach Stream Cash $ 100,000 $ 20,000 Inventory 300,000 100,000 Equipment (net) 880,000 380,000 Total $1,280,000 $500,000 Total Liabilities $ 300,000 $100,000 Common stock, $20 par value 400,000 200,000 Other contributed capital 250,000 70,000 Retained earnings 330,000 130,000 Total $1,280,000 $500,000 Required: Appraisals reveal that the inventory has a fair value of...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than...
Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $37,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information? a. A debit of $12,000 to Loss...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) $ $ $ $ $ Liabilities and Equity 110,000 Accounts Payable $ 200,000 Bonds Payable $ 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) $ 210,000 Paid-in Capital in excess of par $ Retained...
The first page is the balance sheet and questions. The second page we are supposed to...
The
first page is the balance sheet and questions. The second page we
are supposed to fill in.
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Question 18-20 are based off this sane chart 2019 2018 2017 (At December 31) Current assets...
Question 18-20 are based off this sane chart
2019 2018 2017 (At December 31) Current assets Tangible fixed assets Intangible assets. Total assets.. $285,000 662,500 40.000 $987,500 $277.500 575,000 45,000 $897.500 $207.000 563.000 50,000 $320,000 Current liabilities Noncurrent liabilities Common stock Additional pald-in capital Retained earnings Stockholders' equity Total liabilities and equity $120,000 266,250 100,000 100,000 400,000 600,000 $110,000 242,500 100,000 100.000 345,000 545,000 $897500 $100,000 220,000 100,000 100,000 300,000 500,000 $820,000 $986250 2012 2018 (For the years ended December...
2 Xono Company purchased the net assets of Yoyo Corporation for $1,000,000. The balance sheet of...
2 Xono Company purchased the net assets of Yoyo Corporation for $1,000,000. The balance sheet of Yoyo immediately prior to the acquisition is as follows: Current Assets $200,000 Current Liabilities S200,000 Equipment, net 200,000 Common Stock 100,000 300,000 100,000 Retained Earnings 500,000 S1,100,000 Building 600,000 APIC Goodwill $1,100,000 The market values of Yoyo's current assets and current liabilities equal the book values. The building has a market value of $700,000 and the equipment has a market value of $300,000. How...
Yankee Corporation acquired 80% of the outstanding stock of Gary Corporation in December 31, 2019 for...
Yankee Corporation acquired 80% of the outstanding stock of Gary Corporation in December 31, 2019 for $735,000 cash. The acquisition occurred on the last day of the fiscal year for both companies. Yankee paid an additional $15,000 in direct acquisition costs to consumate the purchase. The following balance sheet of the parent and subsidiary were prepared immediately subsequent to the investment: Yankee Gary Cash $115,000 $60,000 Accounts receivable 290,000 160,000 Inventory 520,000 80,000 Land 1,000,000 100,000 Building (net) 700,000 230,000...
On January 1, 2017, Franklin Company acquires 80% of the outstanding common stock of LaSalle, for a purchase price of $9...
On January 1, 2017, Franklin Company acquires 80% of the outstanding common stock of LaSalle, for a purchase price of $970,000. It was determined that the fair value of the noncontrolling interest in the subsidiary is $240,000. The book value of the LaSalle’s stockholders’ equity on the date of acquisition is $700,000 and its fair value of net assets is $1,100,000. The acquisition-date acquisition accounting premium (AAP) is allocated $250,000 to equipment with a remaining useful life of 10 years,...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Exercise 2-11 Relation between Purchase Price, Goodwill, and Negative Goodwill LO 6 The following balance sheets were reported on January 1, 2019, for Peach Company and Stream Company: Peach Stream Cash $ 100,000 $ 20,000 Inventory 300,000 100,000 Equipment (net) 880,000 380,000 Total $1,280,000 $500,000 Total Liabilities $ 300,000 $100,000 Common stock, $20 par value 400,000 200,000 Other contributed capital 250,000 70,000 Retained earnings 330,000 130,000 Total $1,280,000 $500,000 Required: Appraisals reveal that the inventory has a fair value of...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) $ $ $ $ $ Liabilities and Equity 110,000 Accounts Payable $ 200,000 Bonds Payable $ 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) $ 210,000 Paid-in Capital in excess of par $ Retained...
The
first page is the balance sheet and questions. The second page we
are supposed to fill in.
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Question 18-20 are based off this sane chart
2019 2018 2017 (At December 31) Current assets Tangible fixed assets Intangible assets. Total assets.. $285,000 662,500 40.000 $987,500 $277.500 575,000 45,000 $897.500 $207.000 563.000 50,000 $320,000 Current liabilities Noncurrent liabilities Common stock Additional pald-in capital Retained earnings Stockholders' equity Total liabilities and equity $120,000 266,250 100,000 100,000 400,000 600,000 $110,000 242,500 100,000 100.000 345,000 545,000 $897500 $100,000 220,000 100,000 100,000 300,000 500,000 $820,000 $986250 2012 2018 (For the years ended December...
2 Xono Company purchased the net assets of Yoyo Corporation for $1,000,000. The balance sheet of Yoyo immediately prior to the acquisition is as follows: Current Assets $200,000 Current Liabilities S200,000 Equipment, net 200,000 Common Stock 100,000 300,000 100,000 Retained Earnings 500,000 S1,100,000 Building 600,000 APIC Goodwill $1,100,000 The market values of Yoyo's current assets and current liabilities equal the book values. The building has a market value of $700,000 and the equipment has a market value of $300,000. How...
Most questions answered within 3 hours.
-
Explain how taking an SGLT-2 inhibitor, along with taking
insulin leads to ketoacidosis in people who...
asked 2 minutes ago -
Show the truth table of the
gates needed to control the PISO internal FF, has a...
asked 5 minutes ago -
If X ~ N(50; 100); Determine the value of '' k '' for both
situation:
a)...
asked 24 minutes ago -
In paired t-test, what's the difference between using pooled
variance and using the standard deviation of...
asked 25 minutes ago -
What are the major ethical theories, and how do they apply to
the role of a...
asked 25 minutes ago -
''Driving the call for multilateralism in trade at the summit
was Chinese President Xi Jinping, whose...
asked 18 minutes ago -
Present one method for changing health behavior that you think is
particularly effective.
Describe how one...
asked 27 minutes ago -
Is Goldicks negligent conduct committed within the
scope of his employment for Lapp Roofing liable
asked 39 minutes ago -
What are the effects of IMC-based PID controller and
Zeigler-Nicholas parameters on the specifications of a...
asked 44 minutes ago -
1. Explain the tem (10) Key Success Factors in Contemporary
Selling
asked 58 minutes ago -
It's absolutely linked, the effectiveness of the CP Coordinator
and the success of the business impact...
asked 1 hour ago -
where does leadership reside in belief theory
asked 1 hour ago