Wonderland, Inc. purchased Cheshire Co. for $ 960 comma 000 $960,000. The market value of Cheshire's...
Wonderland, Inc. purchased Cheshire Co. for $ 960 comma 000 $960,000. The market value of Cheshire's assets and liabilities at the time of purchase were $ 950 comma 000 $950,000 and $ 280 comma 000 $280,000 respectively. The journal entry to record this will include:
Homework Answers
Assets acquired = $950,000
Liabilities acquired = $280,000
Purchase consideration = $960,000
Goodwill = Purchase consideration + Liabilities acquired - Assets acquired
= 960,000 + 280,000 - 950,000
= $290,000
Journal
|
Account Title |
Debit |
Credit |
| Assets | 950,000 | |
| Goodwill | 290,000 | |
| Liabilities | 280,000 | |
| Cash | 960,000 |
kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.
Add Answer to:
Wonderland, Inc. purchased Cheshire Co. for $ 960 comma 000
$960,000. The market value of Cheshire's...
Wonderland, Inc. purchased Cheshire Co.for $880,000. The market value of Cheshire's assets and liabilities at the...
Wonderland, Inc. purchased Cheshire Co.for $880,000. The market value of Cheshire's assets and liabilities at the time of purchase were $970,000 and $320.000 respectively. The journal entry to record this will include: O O O A. debit to Investments for $970.000, credit to Cash $880,000 and credit to Gain on Investment $90,000 B. debit to Investments for $880.000, credit to Cash $880,000 C. debit to Asset accounts for $970,000, credit to Gain on Investments $90,000 and credit to Cash $880,000...
In Motion Upper T minus ShirtsIn Motion T−Shirts paid $ 200 comma 000$200,000 for a group...
In Motion Upper T minus ShirtsIn Motion T−Shirts paid $ 200 comma 000$200,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $ 105 comma 000$105,000, the building $ 84 comma 000$84,000, and the equipment $ 21 comma 000$21,000. Journalize the lump-sum purchase of the three assets for a total cost of $ 200 comma 000$200,000, the amount for which the business signed a note payable. (Record...
Mighty Mountain Mining paid $ 442 comma 700 for the right to extract mineral assets from a 450 co...
Mighty Mountain Mining paid $ 442 comma 700 for the right to extract mineral assets from a 450 comma 000-ton deposit. In addition to the purchase price, Mighty also paid a $ 300 filing fee, a $ 2 comma 000 license fee to the state of Nevada, and $ 50 comma 000 for a geological survey of the property. Because Mighty purchased the rights to the minerals only and did not purchase the land, it expects the asset to have...
Technologies Inc. began 20172017 with inventory of $ 25 comma 000$25,000. During the year, ParklandParkland purchased...
Technologies Inc. began 20172017 with inventory of $ 25 comma 000$25,000. During the year, ParklandParkland purchased inventory costing $ 110 comma 000$110,000 and sold goods for $ 155 comma 000$155,000, with all transactions on account. ParklandParkland ended the year with inventory of $ 34 comma 000$34,000. Journalize all the necessary transactions under the periodic inventory system. Requirement 1. Journalize all the necessary transactions under the periodic inventory system. (Record debits first, then credits. Explanations are not required.) First, journalize the...
On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $ 12 comma 000 cash,...
On January 2, 2017, Snug Clothing Consignments purchased showroom fixtures for $ 12 comma 000 cash, expecting the fixtures to remain in service for five years. Snug has depreciated the fixtures on a double-declining-balance basis, with zero residual value. On September 30 comma 2018, Snug sold the fixtures for $ 6 comma 200 cash. Record both depreciation expense for 2018 and sale of the fixtures on September 30, 2018. (Record debits first, then credits. Select the explanation on the last...
Mighty Mountain Mining paid $ 442 comma 700 for the right to extract mineral assets from...
Mighty Mountain Mining paid $ 442 comma 700 for the right to extract mineral assets from a 450 comma 000-ton deposit. In addition to the purchase price, Mighty also paid a $ 300 filing fee, a $ 2 comma 000 license fee to the state of Nevada, and $ 50 comma 000 for a geological survey of the property. Because Mighty purchased the rights to the minerals only and did not purchase the land, it expects the asset to have...
8. On MayMay 15, 20182018, StaceyStacey Co. invests $ 12 comma 000$12,000 in MaxMax, Inc. stock....
8. On MayMay 15, 20182018, StaceyStacey Co. invests $ 12 comma 000$12,000 in MaxMax, Inc. stock. MaxMax pays StaceyStacey a $ 900$900 dividend on NovemberNovember 15, 20182018. StaceyStacey sells the MaxMax stock on DecemberDecember 10, 20182018, for $ 11 comma 800$11,800. Assume the StaceyStacey Co. does not have significant influence over MaxMax, Inc. Journalize the 20182018 transactions related to StaceyStacey's investment in MaxMax stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry...
thank you Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash....
thank you
Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash. The book value of Kelleher's assets is $12,000,000 (market value, $18,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000). Requirements Compute the cost of goodwill purchased by Potters Record the purchase of Kelleher by Potters. 2. Requirement 1. Compute the cost of goodwill purchased by Potters Purchase price to acquire Kelleher Market value of Kelleher's assets Less: Market value of Kelleher's liabilities Less:...
thank you Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash....
thank you
Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash. The book value of Kelleher's assets is $12,000,000 (market value, $18,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000). Requirements Compute the cost of goodwill purchased by Potters Record the purchase of Kelleher by Potters. 2. Requirement 1. Compute the cost of goodwill purchased by Potters Purchase price to acquire Kelleher Market value of Kelleher's assets Less: Market value of Kelleher's liabilities Less:...
16) Joe, Inc. purchased a competitor in 2010 for $950,000. The results of an appraisal of...
16) Joe, Inc. purchased a competitor in 2010 for $950,000. The results of an appraisal of the value of the assets and liabilities of the competitor is below: Fair Value ($) Cash 100,000 Accounts Receivable 200,000 Inventory 1,000,000 Property, Plant and Equipment 1,500,000 Accounts Payable 810,000 Notes Payable 1,200,000 Prepare the journal entry to record the acquisition? 17) Related to (16) above, an internal analysis of Joe, Inc. performed on December 31, 2012 indicated that the fair value of the...
Wonderland, Inc. purchased Cheshire Co.for $880,000. The market value of Cheshire's assets and liabilities at the time of purchase were $970,000 and $320.000 respectively. The journal entry to record this will include: O O O A. debit to Investments for $970.000, credit to Cash $880,000 and credit to Gain on Investment $90,000 B. debit to Investments for $880.000, credit to Cash $880,000 C. debit to Asset accounts for $970,000, credit to Gain on Investments $90,000 and credit to Cash $880,000...
thank you
Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash. The book value of Kelleher's assets is $12,000,000 (market value, $18,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000). Requirements Compute the cost of goodwill purchased by Potters Record the purchase of Kelleher by Potters. 2. Requirement 1. Compute the cost of goodwill purchased by Potters Purchase price to acquire Kelleher Market value of Kelleher's assets Less: Market value of Kelleher's liabilities Less:...
thank you
Potters has acquired several other companies. Assume that Potters purchased Kelleher for $12,000,000 cash. The book value of Kelleher's assets is $12,000,000 (market value, $18,000,000), and it has liabilities of $11,000,000 (market value, $11,000,000). Requirements Compute the cost of goodwill purchased by Potters Record the purchase of Kelleher by Potters. 2. Requirement 1. Compute the cost of goodwill purchased by Potters Purchase price to acquire Kelleher Market value of Kelleher's assets Less: Market value of Kelleher's liabilities Less:...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago