9:49Done 11b36d000cf94aa18..._JOn January 1, 20X8, Alaska Corporationacquired Mercantile Corporation's net assets bypaying $160,000 cash. Balance sheet data for thetwo companies and fair value information forMercantile Corporation immediately before thebusiness combination are given below:AlaskaMercantileBook ValueBook ValueFair ValueCash$200,000$30,000$30,000Accounts Receivable40,00022,00022,000Inventory120,00025,00036,000Patents50,00020,00040,000Buildings and Equipment330,000250,000150,000Less: Accumulated Depreciation-140,000-150,000Total Assets$600,000$197,000$278,000Accounts PayableNotes PayableS85,000$55,000$55,000100,00080,00080,000Common Stock:$5 par value$2 par valueAdditional Paid-In CapitalRetained EarningsTotal Liabilities and Equities120,00020,000140,00025,000155,000$600,00017,000S197,000RequiredPrepare the journal entry to record theacquisition of Mercantile Corporation, showing?goodwill calculations if anyPrepare Alaska balance sheet aftercombination

Goodwill is the balancing figure in the given journal entry. Any amount paid in excess of net assets…

On January 1, 20X8, Alaska Corporation acquired Mercantile Corporation's net assets by paying $160,000 cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below: Alaska Book Value Mercantile Book Value Fair Value Cash $200,000 $30,000 22,000 25,000 20,000 $30,000 Accounts Receivable 40,000 22,000 36,000 Inventory 120,000 Patents 50,000 40,000 Buiklings and Equipment Less: Accumulated Depreciation_ Total Assets 330,000 250,000 150,000 -140,000 -150,000 $600,000 S197,000 $278,000 Accounts Payable Notes Payable S85,000 $55,000 $55,000 100,000 80,000 80,000 Common Stock: $5 par value $2 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equities 120,000 20,000 140,000 155,000 $600,000 25,000 17,000 S197,000 Required Prepare the journal entry to record the acquisition of Mercantile Corporation, showing ?goodwill calculations if any Prepare Alaska balance sheet after combination

On January 1, 20X8, Alaska Corporation acquired Mercantile Corporation's net assets by paying $160,000 cash. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below: Alaska Book Value Mercantile Book Value Fair Value Cash $200,000 $30,000 22,000 25,000 20,000 $30,000 Accounts Receivable 40,000 22,000 36,000 Inventory 120,000 Patents 50,000 40,000 Buiklings and Equipment Less: Accumulated Depreciation_ Total Assets 330,000 250,000 150,000 -140,000 -150,000 $600,000 S197,000 $278,000 Accounts Payable Notes Payable S85,000 $55,000 $55,000 100,000 80,000 80,000 Common Stock: $5 par value $2 par value Additional Paid-In Capital Retained Earnings Total Liabilities and Equities 120,000 20,000 140,000 155,000 $600,000 25,000 17,000 S197,000 Required Prepare the journal entry to record the acquisition of Mercantile Corporation, showing ?goodwill calculations if any Prepare Alaska balance sheet after combination

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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