Windsor Industries purchased all the following assets and liabilities of Protector Goods for $906,000 cash: Book Value Fair Value Accounts Receivable $136,000 $136,000 Inventory 83,000 91,000 Property, Plant & Equipment (net) 519,000 644,000 Land 148,000 170,000 Accounts Payable 89,000 89,000 Notes Payable 108,000 108,000 Prepare the appropriate journal entries for Windsor Industries on acquisition. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit > > > >

Windsor Industries purchased all the following assets and liabilities of Protector Goods for $906,000 cash: Book Value Fair Value Accounts Receivable $136,000 $136,000 Inventory 83,000 91,000 Property, Plant & Equipment (net) 519,000 644,000 Land 148,000 170,000 Accounts Payable 89,000 89,000 Notes Payable 108,000 108,000 Prepare the appropriate journal entries for Windsor Industries on acquisition. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit > > > >

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

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9. RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets of SP Company, as recorded on SP Company's books at the time of the acquisition, is as follows: Assets Cash Receivable Inventory Land, buildings, and equipment (net) Total assets Liabilities Current liabilities Long-term debt P31,000 250,000 302,000 350,000 P933,000 Inventory Land, building and equipment Patent P90,000 185,000 P275,000 P658,000 Total liabilities Net assets (book value) The following schedule shows the differences between the recorded costs and market values of the assets of SP Company at the date of the acquisition: Cost P302,000 350,000 0 Purchased in-process research and development Existing workforce Totals P652,000 P275,000 Liabilities Determine the amount of goodwill to be recognized on the acquisition? a. P642,000 c. P74,000 b. P464,000 d. P164,000 0 0 Market P400,000 390,000 40,000 300,000 90,000 P1,220,000 P275,000
S Company had the following balances at the time it was acquired by P Company:Cash P36,000Accounts receivable 457,000Inventories 120,000Property, plant and equipment 696,400Goodwill 200,000Accounts payable 350,800P Company paid P1.4M for the net assets of S Company. It was determined that fair market values of inventories and property, plant and equipment were P133,000 and P900,000, respectively.An assumed contingent liability with a fair value amounting to P20,000 and such amount is considered a reliable measurement. Also, a P50,000 future losses or reorganization/ restructuring costs are expected to be incurred as a result of the business combination.In the books of P Company, how will be the amount of Goodwill arising from business combination?
Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were associated with this acquisition: Carrying Fair value amount Accounts receivable Inventory Government contract Equipment Short term loan payable 2,000,000 1,000,000 2,000,000 500,000 1,000,000 500,000 (2,000,000) 20,000,000 400,000 (oo0'0000) 1,400,000 Net assets The fair value associated with the acquired entity's government contract is not based on any legal or contractual relationship. In addition, for obvious reason, there is no open market trading for an intangible of this sort What is the goolwill arising from the acquisition?
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On 1 July 2021 Collaroy Ltd acquired the following assets and liabilities from Bilgola Ltd Carrying amount Fair value Land $500,000 550,000 Plant ( cost $400,000) 480,000 460,000 Inventory 65,000 63,800 Cash 15,000 15,000 Accounts Receivable 40,000 38,600 Accounts Payable (20,000) (20,000) Loans (110,000) (110,000) In exchange for these assets and liabilities Collaroy issued 160,000 shares at $1.70 per share . At 1 July 2021 these shares had a fair value at $7.35 per share Required Prepare the journal entry for the above
Loop Pole Co., acquired all the assets and current liabilities of North Pole Co.,. The North Pole Co., details as follows, Cash OMR 20,000, Building OMR 30,000, Equipment OMR 50,000, Creditors OMR 10,000 and Retained earnings OMR 30,000. Calculate goodwill or capital reserve. Select one: a. Capital Reserve OMR 90,000 b. Goodwill OMR 90,000 c. Goodwill OMR 70,000 d. Capital reserve OMR 70,000
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The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000 Accounts Receivable 1,371,000 Inventories 360,000 PPE 1,948,200 Accounts Payable 1,052,400 Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values of investment and PPE were P399,000 and P2,700,000, respectively. An assumed contingent liability arising from past events with a fair value amounting to P30,000 and such amount is considered a reliable measurement. In the books of Kingdom Co., this transaction resulted in: a. Goodwill recorded at P1,324,200 b. Retained Earnings increased by P704,400| Goodwill recorded at P704,400 d. Current Assets increased by P704,400 С.
Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company’s balance sheet was as follows: Book Value Fair Value Cash $122,900 $122,900 Receivables (net) 207,560 232,240 Inventory 361,510 389,840 Plant and equipment (net) 459,200 573,420 Land 417,050 617,650 Total assets $1,568,220 $1,936,050 Current Liabilities $526,250 $596,650 Common stock ($5 par value) 477,680 Other contributed capital 126,920 Retained earnings 437,370 Total equities $1,568,220 (a) Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,567,060 in cash. (If no entry is required, select "No Entry" for the account titles and enter 0 for the…
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Zenith Corporation sells some of its used store fixtures. The acquisition cost of the fixtures is $12,300, and the accumulated depreciation on these fixtures is $7,439 at the time of sale. The fixtures are sold for $4,622. The value of this transaction in the investing section of the statement of cash flows is Oa. $4,622 Ob. $239 Oc. $12,300 Od. $4,861