Sellco established a car dealership in a town. This dealership is popular as no other town nearby has a showroom. The owner of this dealership wanted to sell and retire. Purchaseco came forward to buy this dealership for a price of $380,000 On the date of sale the balance sheet of Sellco is as under: Assets Cash Accounts Receivable Inventory Furniture Buildings 64,400 34,200 245,100 683,200 Liabilities 94,600 Salaries payable 244,900 Retained earnings Accounts Payable Loans Payable Income tax payable 28,900 214,300 72,600 366,800 255,300 10,400 The fair market values of the assets and liabilities revealed the following: Accounts Receivable Inventory Furniture Buildings Loans payable Income tax payable Please find out thegoodwill / bargain purchase amount and also prepare the journal entry on the day of acquision 106,300 249,600 12,100 6,800 308,400 683,200
Sellco established a car dealership in a town. This dealership is popular as no other town nearby has a showroom. The owner of this dealership wanted to sell and retire. Purchaseco came forward to buy this dealership for a price of $380,000 On the date of sale the balance sheet of Sellco is as under: Assets Cash Accounts Receivable Inventory Furniture Buildings 64,400 34,200 245,100 683,200 Liabilities 94,600 Salaries payable 244,900 Retained earnings Accounts Payable Loans Payable Income tax payable 28,900 214,300 72,600 366,800 255,300 10,400 The fair market values of the assets and liabilities revealed the following: Accounts Receivable Inventory Furniture Buildings Loans payable Income tax payable Please find out thegoodwill / bargain purchase amount and also prepare the journal entry on the day of acquision 106,300 249,600 12,100 6,800 308,400 683,200
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 93PSA: Accounting Alternatives and Financial Analysis Lemon Automobiles has asked your bank for a $100,000...
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