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
Related questions
Question
![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
The fair value calculation of identifiable assets reveal the following:
Inventory
Accounts Receivable
Furniture
Building
Accounts Payable
5,110
13,625
19,800
Accounts Payable
Income tax payable
Employee taxes payable
Bank Loan
Retained earnings
242,000
16,320
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a18b560-4244-4f9c-8a3f-88ca5d359cd8%2F2dc86f8a-efdd-4055-9461-e329b784d261%2Fbc30dlc_processed.png&w=3840&q=75)
Transcribed Image Text: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
The fair value calculation of identifiable assets reveal the following:
Inventory
Accounts Receivable
Furniture
Building
Accounts Payable
5,110
13,625
19,800
Accounts Payable
Income tax payable
Employee taxes payable
Bank Loan
Retained earnings
242,000
16,320
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education