Journal entry worksheet < 2 Record amortization of the goodwill (an intangible asset with an indefinite life). Note: Enter debits before credits. Transaction b. Record entry General Journal Clear entry Debit Credit View general journal
Journal entry worksheet < 2 Record amortization of the goodwill (an intangible asset with an indefinite life). Note: Enter debits before credits. Transaction b. Record entry General Journal Clear entry Debit Credit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
The notes to a recent annual report from Suzie's Shoe Corporation indicated that the company acquired another company.
Steve's Shoes, Inc.
Assume that Suzie's acquired Steve's Shoes on January 5 of the current year. Suzie's acquired the name of the company
and all of its assets for $750,000 cash. Suzie's did not assume the liabilities. The transaction was closed on January 5 of
the current year, at which time the balance sheet of Steve's Shoes reflected the following book values. An independent
appraiser estimated the following market values for the assets.
January 5 of the Current Year
Accounts receivable (net)
Inventory
Fixed assets (net)
Other assets
Total assets
Steve's Shoes, Inc.
Liabilities
Stockholders' equity
Total liabilities and stockholders'
equity
Book Value
$ 50,000
385,000
156,000
4,000
$595,000
$ 75,000
520,000
$595,000
Market Value
$ 50,000
350,000
208,000
10,000
2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31) for the
following items acquired from Steve's Shoes: (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)

Transcribed Image Text:Journal entry worksheet
<
2
Record amortization of the goodwill (an intangible asset with an indefinite life).
Note: Enter debits before credits.
Transaction
b.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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