Assets Land Machinery Inventory Cash Total Statement of Financial Position BD 175,000 50,000 80,500 52.500 BD 358,000 Equity and Liabilities Share Capital - Ordinary Retained Earnings Notes Payable Bonds Payable Total BD 115,000 133,000 20,000 90.000 BD 358.000 Euro and Aldi agreed that the fair value of inventory was BD85,000, land was BD210,000 and machinery was BD52,500. All other assets and liabilities' fair value amounts equal amounts reported on the statement of financial position. Euro paid BD400,000 cash to purchase Aldi. Required: 1) Prepare the journal entry for Euro Inc. to record the acquisition. 2) In December 31, 2022, assume that the carrying amount of net assets including goodwill is BD515,000. Prepare the necessary journal entry, given that the recoverable amount is BD490,000.

Assets Land Machinery Inventory Cash Total Statement of Financial Position BD 175,000 50,000 80,500 52.500 BD 358,000 Equity and Liabilities Share Capital - Ordinary Retained Earnings Notes Payable Bonds Payable Total BD 115,000 133,000 20,000 90.000 BD 358.000 Euro and Aldi agreed that the fair value of inventory was BD85,000, land was BD210,000 and machinery was BD52,500. All other assets and liabilities' fair value amounts equal amounts reported on the statement of financial position. Euro paid BD400,000 cash to purchase Aldi. Required: 1) Prepare the journal entry for Euro Inc. to record the acquisition. 2) In December 31, 2022, assume that the carrying amount of net assets including goodwill is BD515,000. Prepare the necessary journal entry, given that the recoverable amount is BD490,000.

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

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Items Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Padre Company Book Values 12/31 $ 115,250 240,750 440,000 680,000 Accounts 835,000 313,000 Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 (319,000) (127,000) (957,500) (660,000) 0 (70,000) (437,500) (1,015,000) 962,000 Sol Company Amounts Book Values 12/31 $ 54,400 353,000 286,000 163,000 294,000 229,000 (147,000) (30,000) (597,500) 0 (210,000) (90,000) (284,000) (399,900) 379,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires…
Assets Line Item Description Amount Cash and short-term investments $42,572 Accounts receivable (net) 33,774 Inventory 37,691 Property, plant, and equipment 215,705 Total assets $329,742 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $68,960 Long-term liabilities 98,919 Common stock, $10 par 64,740 Retained earnings 97,123 Total liabilities and stockholders’ equity $329,742 Income Statement Line Item Description Amount Sales $91,805 Cost of goods sold (41,312) Gross profit $50,493 Operating expenses (28,002) Net income $22,491 Number of shares of common stock 6,474 Market price of common stock $28 What is the current ratio?
Prepare a classified balance sheet as of December 31, 2022 Cash 49104 Accounts Receivable 44880 Inventory 19976 Land 57200 Buildings 83600 Equipment 35200 Accumulated Dep-Buildings 29040 Accumulated Dep-Equipment 15840 Account Payable 16984 Interest Payable 4400 Dividends Payable 5900 Unearned Rent Revenue 1760 Bonds Payable 44000 Preferred Stock 17600 Paid-in Capital in Excess of Par-Preferred Stock 1760 Common Stock 35200 Paid-in Capital in Excess of Par-Common Stock 16720 Retained Earnings 66044 Treasury Stock 12936 Cash Dividends 5940 Sales Revenue 501600 Rent Revenue 5280 Bad Debt Expense 4092 Interest Expense 4400 Cost of Goods Sold 352000 Depreciation Expense 5808 Other Operating Expenses 34320 Salaries and Wages Expenses 57200 766656 766656
The following information is from Lacy's Inc. $ millions Prior Fiscal Year Current Fiscal Year Net Year-End Assets Revenue Income $21,330 14,403 $18,955 $1,070 a. Compute the asset turnover ratio for the current fiscal year. b. Compute the return on assets ratio for the current fiscal year. Numerator a. Asset Turnover Ratio $ Check b. Return on Assets Ratio $ Numerator Denominator / $ Denominator / $ || Result Result
Calculate the liquidity ratios and current ratios?
Hw.98.
What is the net book value of asset
SOLVE STEP BY STEP IN DIGITAL FORMAT According to the Asset Allocation (AA) formula and the following data: Benchmark weight Market Eurostoxx 50 (RV) German bonds (RF) Cash Calculate: Wallet weight 70% 7% 23% 60% 30% 10% The excess of financial assets The contribution or gain of the financial asset 5.81% 1.45% 0.48% Market profitability
A. P5,200,000 B. P7,200,000 C. P7,700,000 D. P8,500,000 E. answer not given
3
Company: Revenues Operating expenses Gain from disposal of discontinued component Restructuring costs Interest expense Unrealized gain on AFS Debt Investment (OCI) Gain on sale of operating assets A. $240,000. B. $88,000 C. $46,400 D. $72,000 E. $80,000 nglish (United States) Text Predictions On Debits Accessibility: Investigate 420,000 100,000 20,000 Income tax expense has not yet been accrued. The company's income tax rate is 20% on all items. What amount should be reported in the company's Year 6 income statement as income from continuing operations? I Credits $600.000 200,000 10,000 30,000 Focus
prepare a common - size Consolidated Statements of Operations ( balance sheet)