E12.13 (LO 3) (Accounting for Goodwill) On July 1, 2022,Brandon SE purchased Mills Company by paying €250,000 cash andissuing a €150,000 note payable. At July 1, 2022, the statement offinancial position of Mills Company was as follows.Buildings (net)€ 75,000 Equity€235,000Equipment (net)70,000 Accounts payable 200,000Trademarks10,000€435,000Land40,000Inventory100,000Accounts receivable90,000Cash50,000€435,000The recorded amounts all approximate current values except for land(fair value of €80,000), inventory (fair value of €125,000), andtrademarks (fair value of €15,0o0).Instructionsa. Prepare the July 1 entry for Brandon to record the purchase.b. Prepare the December 31 entry for Brandon to recordamortization of intangibles. The trademarks have an estimateduseful life of 4 years with a residual value of €3,000.

a. Prepare the July 1 entry for Brandon to record the purchase. b. Prepare the December 31 entry for Brandon to record amortization of intangibles. The trademarks have an estimated useful life of 4 years with a residual value of €3,000.

a. Prepare the July 1 entry for Brandon to record the purchase. b. Prepare the December 31 entry for Brandon to record amortization of intangibles. The trademarks have an estimated useful life of 4 years with a residual value of €3,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Client A acquired a property on 31 December 2012 for P250,000. The asset is expected to be used within 10 years and will be sold at 5% of the acquisition cost afterwards. Prepare the depreciation schedules using the three methods of computing annual depreciation (i.e., straight-line method, sum-of-the-year’s digit method, and double-declining balance method). The depreciation schedules must show the annual depreciation charges and book values. Compare the three methods in terms of the average book value of the asset in its mid-life (fifth year).
The UST-ECE Department purchased a Communications Trainer worth P 250,000. Freight and insurance charges amounted to P 18,000; customs’, cargo and broker’s fee, P 8,500; taxes, permits, and other expenses, P 25,000. If the estimated life of the trainer is 10 years with a salvage value at the end of life of P 20,000 Using DBM: The depreciation charge during the 4th year is: P 31,745.65 B. P 35,827.27 C. P 71,408.09 D. P 31,818.18 The book value at the end of 6 years is: P 71,181.82 B. P 59,201.5371,181.82 C. P 49,095.01 D. P 61,818.18
Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation…
On 01 March 2021 , old equipment with a useful life of six years was sold for R3000 cash . The cost price of equipment sold was R12000 and the accumulated depreciation on it amounted to R10000 on 01 March 2021 Depreciation is calculated using the straight line method. Depreciation on the remaining amounted to R48000 on 28 February 1. Prepare the asset disposal account in the general ledger. Close off the account . 2. Calculate the balance in accumulated depreciation for equipment account as at 28 February 2022. 3. calculate The profit or loss on the disposal, if the equipment was sold 28 February 2022
On 1 July 20X7 Brown Ltd bought a machine for GHS 48,000. The machine was depreciated at 25% per annum on a straight-line basis until 30 June 20X9. On 1 July 20X9, the machine was revalued to GHS 30,000. Brown Ltd considers that its remaining useful life is three years. According to IAS 16 Property, Plant and Equipment, what should be the depreciation charge for the year ended 30 June 20Y0 and the balance on the revaluation surplus as at 30 June 20Y0? (Ignore any transfer of excess depreciation.) Depreciation charge Revaluation surplus A GHS 8,000 GHS 4,000 B GHS 8,000 GHS 6,000 C GHS 10,000 GHS 6,000 D GHS 10,000 GHS 4,000
A machine was purchased on 1 January 2021 and the other details of the machine are:- Cost of machine N$324 000 Depreciation rate 5 % Determine the amount of deprecation as at 31 December 2021
An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record: Multiple Choice O O O Neither a gain or loss is recognized on this type of transaction. A gain on sale of $2,000. A loss on sale of $1,000. A gain on sale of $1,000. A loss on sale of $2,000.
The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000.
answer in text form please (without image)
please help
d. Polycarp Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Polycarp is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2018 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2018 and the revaluation surplus was correctly recognized on that date. As at 31 December 2019, the asset was revalued at GH¢32,000. Required: Discuss the accounting treatment required in 2018 and 2019 financial statements.
24. A building was acquired on January 1, 2020 at an original cost of P16,000,000, with zero residual value. Depreciation is computed using Double Declining Balance Method. Useful life in years is 20 years. On December 31, 2021, the building is appraised at a fair market value of P14,460,000.The appraisal results are to be recognized in the accounts considering the same remaining life for the building. How much is the amount to be credited to revaluation surplus at December 31, 2021?