Don owns a restaurant in the downtown for 20 years and wanted to sell and retire. He got an offer from Bycol to buy his business for $210,000. The balance Sheet supplied to him was as under: Cash Inventory Accounts Receivable Furniture Building 2,410 7,620 14,630 39,510 164,300 228,470 Accounts Payable Income tax payable Employee taxes payable 242,000 16,320 Bank Loan Retained earnings The fair value calculation of identifiable assets reveal the following: Inventory 5,110 Accounts Receivable 13,625 Furniture 19,800 Building Accounts Payable Please calculate the amount of Goodwill/Bargain Price and record the necessary journal entry on the first day after acquisition by Bycol. 11,060 1,010 2,410 97,150 116,840 228,470
Don owns a restaurant in the downtown for 20 years and wanted to sell and retire. He got an offer from Bycol to buy his business for $210,000. The balance Sheet supplied to him was as under: Cash Inventory Accounts Receivable Furniture Building 2,410 7,620 14,630 39,510 164,300 228,470 Accounts Payable Income tax payable Employee taxes payable 242,000 16,320 Bank Loan Retained earnings The fair value calculation of identifiable assets reveal the following: Inventory 5,110 Accounts Receivable 13,625 Furniture 19,800 Building Accounts Payable Please calculate the amount of Goodwill/Bargain Price and record the necessary journal entry on the first day after acquisition by Bycol. 11,060 1,010 2,410 97,150 116,840 228,470
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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