Seved Help Save & Exit Submit Required: Prepare the joumal entry to record the acquiion by Brewer Company of no entry is requlred for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list Journal entry worksheet points Print Record the acquisition by Brewer Company TEST Note: Enter debits before credits General Journal Debit Credit Next ) 15 of 10 İİİ Prev
Homework Answers
| Computation of Goodwill/Capital Reserve on acquisition | ||
| Particulars | Fair Value | |
| Assets | ||
| AR | 11,75,000 | |
| Inventory | 31,00,000 | |
| PPE | 1,07,25,000 | |
| Total Assets (A) | 1,50,00,000 | |
| Liabilities | ||
| AP | 21,00,000 | |
| BP | 32,25,000 | |
| Total Liabilities (L) | 53,25,000 | |
| Net Assets (A-L) | 96,75,000 | |
| Consideration | 1,11,00,000 | |
| Good Will (since consideration>Net Assets) | 14,25,000 | |
| Journal Entry in the Books of Brewer Company (Purchase Method) | ||
| Particulars | Debit | Credit |
| Business Purchase A/c ……………..Dr | 1,11,00,000 | |
| To liquidator of Millers Inc | 1,11,00,000 | |
| (Being Acquisition of business from Millers Inc) | ||
| 1,11,00,000 | 1,11,00,000 | |
| AR A/c…………………..Dr | 11,75,000 | |
| Inventory A/c……….Dr | 31,00,000 | |
| PPE A/c…………………Dr | 1,07,25,000 | |
| Goodwill A/c………..Dr | 14,25,000 | |
| To AP A/c | 21,00,000 | |
| To BP A/c | 32,25,000 | |
| To Business purchase A/c | 1,11,00,000 | |
| (Being takeover of assets and liabilities from Millers Inc) | ||
| 1,64,25,000 | 1,64,25,000 | |
| Liquidator of Millers Inc …………..Dr | 1,11,00,000 | |
| To Cash/Bank A/c | 1,11,00,000 | |
| (Being Payment of Consideration) | ||
| 1,11,00,000 | 1,11,00,000 | |
Add Answer to:
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc. paying $11,100,000 cash. The book values and fair values of Miller's assets and liabilitie...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were: Accounts receivable Inventory Property, plant, and equipment Land Book Value $ 245 000 320,000 490,000 295.000 Fair Value $ 245,000 540.000 740,000 590.000 In addition, Smith Corp. had liabilities totalling $510,000 at the date of acquisition and a customer list estimated to have a fair...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 398,500 $ 359,500 823,500 1,137,750 1,965,000 2,330,250 0 842,250 (113,500) (113,500) (2,000,000) (500,000) (399,500) (486,000) 312,000 Arturo Company pays $3,530,000 cash and issues 24,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common...
The following book and fair values were available for Westmont Company as of March 1 Book...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value $ 245,500 $ 203,750 820,500 1,072,500 2,115,000 2,457,750 833,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses (96,0)96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo pays cash of $4,275,250 to acquire Westmont. No stock is issued and Arturo pays $51,200 for legal fees to complete the transaction Prepare Arturo's journal entry to record...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 406,000 $ 363,500 817,500 1,087,500 2,005,000 2,314,750 0 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 Arturo pays cash of $4,389,750 to acquire Westmont. No stock is issued and Arturo pays $44,000 for legal fees to complete the transaction. Prepare Arturo's journal entry...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc.,...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $450 million. The fair value of Harman's identifiable tangible and intangible assets totaled $533 million, and the fair value of liabilities assumed by Pesky was $170 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill)...
The following book and fair values were available for Westmont Company as of March 1. Inventory...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 375,750$ 341,250 797,250 1,082,250 2,040,000 2,340,000 861,000 (93,500) (93,500) (2,000,000) (500,000) (437,500) (495,000) 313.000 Arturo pays cash of $4,338,000 to acquire Westmont. No stock is issued and Arturo pays $45,800 for legal fees to complete the transaction Prepare Arturo's journal entry to...
The following book and fair values were avallable for Westmont Company as of March 1 Book...
The following book and fair values were avallable for Westmont Company as of March 1 Book Value Fair Value $ 231,888 191,758 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 822,8 1,119,758 2,13e,9e8 2,447,258 867,758 (184, 1,8) (2,866,888) (58e,eee) (417,508) (464, 588) 303,8e8 Arturo Company pays $3,780,000 cash and Issues 28,700 shares of its $2 par value common stock (falr value of $50 per share) for all of Westmont's common stock...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 296,000 $ 242,750 Land 766,500 1,034,250 Buildings 2,150,000 2,453,000 Customer relationships 0 846,750 Accounts payable (106,500 ) (106,500 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (428,000 ) Revenues (467,000 ) Expenses 289,000 Arturo pays cash of $4,271,250 to acquire Westmont. No stock is issued and Arturo pays $51,100 for legal fees to complete...
The following book and fair values were available for Westmont Company as of March 1 Book...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses $ 609,250 $572,250 755, 250 1,050,000 1,800,000 2,152,500 849,750 (91,000) 91,0) (2,000,000) (500,000) (416,500) (481,500) 324,500 Arturo Company pays $4,150,000 cash and issues 20,900 shares of its $2 par value common stock (fair value of $50 per shae)for all of Westmont's common stock in...
The following book and fair values were available for Westmont Company as of March 1. Book...
The following book and fair values were available for Westmont Company as of March 1. Book Value Fair Value Inventory $ 587,750 $ 555,250 Land 794,250 1,082,250 Buildings 1,805,000 2,157,500 Customer relationships 0 838,500 Accounts payable (102,000 ) (102,000 ) Common stock (2,000,000 ) Additional paid-in capital (500,000 ) Retained earnings 1/1 (412,500 ) Revenues (486,500 ) Expenses 314,000 Arturo Company pays $4,010,000 cash and issues 26,300 shares of its $2 par value common stock (fair value of $50 per...
Hendrie Inc. acquired the listed assets and liabilities of Smith Corp. for $2,200,000 cash on 1 January. The book values and fair values of the assets of Smith as of the date of acquisition were: Accounts receivable Inventory Property, plant, and equipment Land Book Value $ 245 000 320,000 490,000 295.000 Fair Value $ 245,000 540.000 740,000 590.000 In addition, Smith Corp. had liabilities totalling $510,000 at the date of acquisition and a customer list estimated to have a fair...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 398,500 $ 359,500 823,500 1,137,750 1,965,000 2,330,250 0 842,250 (113,500) (113,500) (2,000,000) (500,000) (399,500) (486,000) 312,000 Arturo Company pays $3,530,000 cash and issues 24,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont's common...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value $ 245,500 $ 203,750 820,500 1,072,500 2,115,000 2,457,750 833,250 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses (96,0)96,000) (2,000,000) (500,000) (413,000) (494,000) 322,000 Arturo pays cash of $4,275,250 to acquire Westmont. No stock is issued and Arturo pays $51,200 for legal fees to complete the transaction Prepare Arturo's journal entry to record...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 406,000 $ 363,500 817,500 1,087,500 2,005,000 2,314,750 0 868,500 (128,500) (128,500) (2,000,000) (500,000) (424,500) (482,500) 307,000 Arturo pays cash of $4,389,750 to acquire Westmont. No stock is issued and Arturo pays $44,000 for legal fees to complete the transaction. Prepare Arturo's journal entry...
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $450 million. The fair value of Harman's identifiable tangible and intangible assets totaled $533 million, and the fair value of liabilities assumed by Pesky was $170 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill)...
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid in capital Retained earnings 1/1 Revenues Expenses Book Value Fair Value $ 375,750$ 341,250 797,250 1,082,250 2,040,000 2,340,000 861,000 (93,500) (93,500) (2,000,000) (500,000) (437,500) (495,000) 313.000 Arturo pays cash of $4,338,000 to acquire Westmont. No stock is issued and Arturo pays $45,800 for legal fees to complete the transaction Prepare Arturo's journal entry to...
The following book and fair values were avallable for Westmont Company as of March 1 Book Value Fair Value $ 231,888 191,758 Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses 822,8 1,119,758 2,13e,9e8 2,447,258 867,758 (184, 1,8) (2,866,888) (58e,eee) (417,508) (464, 588) 303,8e8 Arturo Company pays $3,780,000 cash and Issues 28,700 shares of its $2 par value common stock (falr value of $50 per share) for all of Westmont's common stock...
The following book and fair values were available for Westmont Company as of March 1 Book Value Fair Value Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings 1/1 Revenues Expenses $ 609,250 $572,250 755, 250 1,050,000 1,800,000 2,152,500 849,750 (91,000) 91,0) (2,000,000) (500,000) (416,500) (481,500) 324,500 Arturo Company pays $4,150,000 cash and issues 20,900 shares of its $2 par value common stock (fair value of $50 per shae)for all of Westmont's common stock in...
Most questions answered within 3 hours.
-
For a reaction, reagents --->products, it's forwarding rate
(rate of products formation) is proportional to the...
asked 1 minute ago -
The amounts of nicotine in a certain brand of cigarette are
normally distributed with a mean...
asked 2 minutes ago -
What did Butler and Hobbes contribute to our understanding of
utilitarianism?
asked 3 minutes ago -
History
Lincoln's religious thought was almost exclusively shaped by his
Calvinist upbringing.
True
False
QUESTION 6...
asked 2 minutes ago -
In a two-way factorial ANOVA, the final F-ratio for
factor AxB is determined by dividing _____...
asked 3 minutes ago -
If 1.6g of CH4 reacts with oxygen gas to form water and carbon
dioxide what is...
asked 2 minutes ago -
Applying the content from Primal Leadership, and the format
Personal Change Plan on p. 110 Boyatzis...
asked 5 minutes ago -
Your black labrador has a genotype of BbEe.
Which of the following is correct? Select all...
asked 8 minutes ago -
Which of the following statements explains why the cost of
advertising might be relevant to a...
asked 19 minutes ago -
NO3- nitrate ion, what is the symmetry operationof rotation of
it?
asked 23 minutes ago -
Block A, with mass mA, is initially at rest on a frictionless
horizontal floor. Block B,...
asked 25 minutes ago -
Space shuttle astronauts each consume an average of 3000
calories per day. One meal normally consists...
asked 26 minutes ago