Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Question
Chapter 9, Problem 9.13SE
1.
To determine
To Calculate: the amount of goodwill purchased by T Advertising as a part of the acquisition of S Report.
2.
To determine
To Journalize: the T Advertising’s acquisition of S Report.
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Accounting for goodwill
Decca Publishing paid $230,000 to acquire Thrifty Nickel, a weekly advertising paper. At the time of the acquisition, Thrifty Nickel’s balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair market value of Thrifty Nickels assets was $100,000. The fair market value of Thrifty Nickels liabilities was $70,000.
Requirements
How much goodwill did Decca Publishing purchase as part of the acquisition of Thrift Nickel?
Journalize Decca Publishing’s acquisition of Thrifty Nickel
Chapter : Goodwill
On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna:
PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000.
Instructions:
a. Calculate the amount of Goodwill that occured from the transaction above and prepare the journal entry if the consideration given is: $4.000.000!
b. Company estimates that the useful life of goodwill is 18 years. Prepare the journal entry in regard to the information!
c. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna…
Chapter : Goodwill
On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna:
PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000.
Instructions:
a. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna division is $3.350.000. While the fair value less cost to sell is $3.250.000. Prepare the journal entry regarding the situation!
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
Ch. 9 - Prob. 1QCCh. 9 - Prob. 2QCCh. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QCCh. 9 - Prob. 8QCCh. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - What is the difference between a capital...Ch. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - How does a business decide which depreciation...Ch. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - How is gain o r loss determined when disposing of...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - Prob. 17RQCh. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - What does it mean if an exchange of plant assets...Ch. 9 - Determining the cost of an asset Alton Clothing...Ch. 9 - Prob. 9.2SECh. 9 - Prob. 9.3SECh. 9 - Computing second-year depreciation and accumulated...Ch. 9 - Calculating partial-year depreciation On September...Ch. 9 - Prob. 9.6SECh. 9 - Prob. 9.7SECh. 9 - Discarding an asset On May 31, 2016, Choice...Ch. 9 - Selling an asset at gain or loss Mill Creek Golf...Ch. 9 - Selling an asset at gain or loss Pelman Company...Ch. 9 - Accounting for depletion of natural resources...Ch. 9 - Accounting for an intangible asset On March 1,...Ch. 9 - Prob. 9.13SECh. 9 - Prob. 9.14SECh. 9 - Prob. 9.15SECh. 9 - Prob. 9.16SECh. 9 - Prob. 9.17ECh. 9 - Making a lump-sum purchase of assets Dearwood...Ch. 9 - Prob. 9.19ECh. 9 - Computing depreciation-three methods Crackling...Ch. 9 - Changing an asset's useful life and residual value...Ch. 9 - Recording partial-year depreciation and sale of an...Ch. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.25ECh. 9 - Prob. 9.26ECh. 9 - Computing asset turnover ratio Snap Dragon Photo...Ch. 9 - Prob. 9.28ECh. 9 - Measuring asset cost, units-of-production...Ch. 9 - Prob. 9.30APCh. 9 - Determining asset cost, recording first-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.33APCh. 9 - Prob. 9.34APCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.36BPCh. 9 - Determining asset cost, recording rust-year...Ch. 9 - Recording lump-sum asset purchases, depreciation,...Ch. 9 - Prob. 9.39BPCh. 9 - Prob. 9.40BPCh. 9 - Journalizing partial-year depreciation and asset...Ch. 9 - Prob. 9.42CPCh. 9 - Western Bank Trust purchased land and a building...Ch. 9 - Prob. 9.1CTFCCh. 9 - Prob. 9.1CTFSCCh. 9 - In 150 words or fewer, explain the different...
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