Compute the amount of goodwill acquired by winans

Assignment Help Accounting Basics

Reference no: EM133650517

Answer the followings with necessary steps .

Question 1. P Company bought some assets from Gray construction, which was disposing of its road construction division. The assets purchased and their appraisal values are given below.

Required: Assuming that P Company paid Birr 500000 for all the assets acquired, prepare a schedule showing the allocation of total cost among the assets acquired.

Question 2. Express company has a delivery truck that cost Bin 48000 and has been depreciated Birr 20000. Record journal entries under the following assumptions

A) It was retired as having no value
B) It was sold for Birr 31000
C) It was sold for Birr 18000

Question 3. Gershwin Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of Br. 120,000 on April 1, 2010. The franchise grants Gershwin the right to sell certain products and services for a period of 8 years. Prepare Gershwin's April 1 journal entry and December 31 adjusting entry.

Question 4. On September 1, 2010, Winans Corporation acquired Aumont Enterprises for a cash payment of Br. 700,000. At the time of purchase, Aumont's balance sheet showed assets of Br. 620,000, liabilities of Br. 200,000, and owners' equity of Br. 420,000. The fair value of Aumont's assets is estimated to be Br. 800,000. Compute the amount of goodwill acquired by Winans.

Question 5. H Company was shed for permitting local residents to be exposed to toxic chemicals from its plant. The company lost its suit. The lawyers concluded that it is probable that the company will be liable for a judgment costing any where from Birr 80000 to Bin 120000, but no specific amount is estimable How much litigation liability the company should accrue?

Question 6. XYZ Company made purchases of a particular product in the month ended Sene 30 2000 as follows:

Sene 1, Beginning inventory 200 units @ Birr 10

Sene 14, Purchased 350 units @ Birr 15

Sene 20, Purchased 500 Units @ Birr 20

Sene 26, Purchased 700 Units @ Birr 25

XYZ Company made sales on the following dates at $ 40 per Unit:

Sene 10, 190 Units

Sene 15, 240 Units

Sene 22, 400 Units

Total Sales 830 Units

Required

XYZ uses a perpetual system. Determine the cost assigned to the cost of goods sold, end inventory, and the gross profit amount under each of the following:

A. The FIFO Method

B. The LIFO method and

C. The moving average method

Reference no: EM133650517

Questions Cloud

Identify the way you feel you learn best academically : Identify the way you feel you learn best academically. Be sure to provide example of time you felt that learning in preferred learning style helped you succeed.

What similarities and differences are noticeable : What similarities and differences are noticeable? Why would this format be helpful to victim advocates or victim service

Describe diverse perspectives that are represented in work : Describe the diverse perspectives that are represented in the work. Describe how your self-concept influences your perspective of the work.

How do creative works impact the way people view themselves : Describe the relationship between the humanities and self-identity. How do creative works impact the way people view themselves?

Compute the amount of goodwill acquired by winans : How much litigation liability the company should accrue and Compute the amount of goodwill acquired by Winans

How health care systems are used to improve patient care : Write a 3 to 5 pages paper (excluding title page and reference page) discussing how health care systems are used to improve patient care.

Smoking history presents with shortness of breath : A middle aged adult with a 32 pack year smoking history presents with shortness of breath, with episodes of wheezing, w

Exposure to pollutants and smoking to attach permanently : Do you think it is possible for someone's exposure to pollutants and smoking to attach permanently

After stepping on rusty nail : After stepping on a rusty nail, you start experiencing muscle spasms, and it becomes difficult to open your mouth because your neck and jaw muscles feel locked.

User Account

All Pages