Question 3(a) Explain the ways in which a company may expand by obtaining new assets.(b) Jamuna River Ltd purchased a parcel of assets and liabilities comprising abusiness directly from Lyneham Pty Ltd. The parcel of assets, measured at net fairvalue, consisted of:Balance of Accounts:($)_Plant150,000Land240,000Vehicles120,000Accounts receivable30,000Accounts payable(48,000)Total492,000Question 3 (Cont'd)Required:Prepare journal entries to record the acquisition by Jamuna River Ltd, assuming that:(i) The cost of acquisition was $600,000 cash.(ii) The cost of acquisition was $432,000 cash.

Ways of expansion. (1)If the current product has surplus demand then company may expand its…

Answered: Question 3 (a) Explain the ways in…

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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TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash Flows Fair Value Equipment $ 100,000 $ 106,000 $ 90,000 Building $ 200,000 $ 250,000 $ 195,000 Patent $ 50,000 $ 58,000 $ 36,000 What amount of loss should be recorded by TBB due to asset impairment?
Illu.1 : A Ltd. acquired B Ltd. Business with the following values. Rs. Fixed Asets 3,00,000 1,00,000 50,000 Current assets Debentures Current Liabilities 1,00,000 Calculate purchase consideration. CS Scanned with CamScanner
Financial Statement Presentation Alexa Corp. reported the following amounts for the year just ended: Land $150,000 Patents 25,000 Equipment 40,000 Buildings 150,000 Goodwill 37,000 Accumulated amortization 13,000 Accumulated depreciation 90,000 Prepare a partial balance sheet for these amounts. Property, Plant and Equipment (net) Answer Goodwill Answer Intangible Assets Answer
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The Walston Company is to be liquidated. It has the following liabilities: Income taxes Notes payable (secured by land) Accounts payable Salaries payable (evenly divided between two employees) Bonds payable Administrative expenses for liquidation The company has the following assets: $ 7,600 136,000 93,000 14,000 78,000 28,000 Book Value Fair Value Current assets $ 88,000 Land 108,000 Buildings and equipment 108,000 $ 43,000 98,000 132,000 Required: How much money will the holders of the notes payable collect following liquidation? Total amount collected
Noncurrent Asset Held for Sale The statement of financial position of an entity on December 31, 20x1 shows the following information: Cash and cash equivalents 600,000 Trade and other receivables 1,200,000 Inventories 3,600,000 Investment property (Cost model) 1,400,000 Investment in associate 800,000 Property, plant and equipment 5,000,000 Total assets 12,600,000 Trade and other payables 4,900,000 Current tax payable 1,800,000 Deferred tax liability 700,000 Ordinary share capital 2,000,000 Retained earnings 2,700,000 Other components of equity 500,000 Total liabilities & equity 12,600,000 On December 31, 20x1, the entity commits to a plan to sell the investment property. All conditions of PFRS 5 are met. The fair value of the investment property on this date is P1,600,000 while the estimate of costs to sell is P50,000. Explain why is it considered as a noncurrent asset held for sale. And what should be the journal entry
If the company's assets in TL: cash 100.000, accounts receivable 50.000, inventory 150.000, and building 200.000 (market value 300.000) and the liabilities 300.000. If the price paid to acquire company 400.000 TL, how much is the goodwill under market value approach? Select one: a. 100.000 b. 300.000 c. 200.000 d. 150.000
COTB MC Qu. 15-70 (Algo) Assume a company sold a... Assume a company sold a piece of equipment that had an original cost of $500,000 and accumulated depreciation of $300,000. The gain on the sale was $21,000. In addition, the beginning and ending balances in the company's Property, Plant, and Equipment account were $4,700,000 and $4,600,000, respectively. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be: Multiple Choice $(179,000). $(200,000). O $(158,000). $(121,000).
Hi, may I know, the FIXED ASSET in that picture is only "property, plant and equipment" or is there anything I missed? Thank you for helping me.
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