The financial statements of International Foods for the year ended December 31, 2022, reported the following details of acquisitions (adapted)(Click the icon to view the details of acquisitions.)International Foods paid $131,000 cash for the acquisitions. Assume that the book value of the assets is equal to their fair valueRequired1. How much goodwill did International Foods purchase as part of the 2022 acquisitions?2. Prepare the summary journal entry to record the acquisition at December 31, 2022.3. Assume that, in 2023, the annual review of goodwill at December 31 identified a 20 percent impairment of the goodwill acquired in 2022. Prepare the journal entry required to record thisimpairmentRequirement 1. How much goodwill did International Foods purchase as part of the 2022 acquisitions?How much goodwill did International Foods purchase as part of the 2022 acquisitions?Details of AcquisitionsAssetsCashAccounts receivableEquipmentIntangiblesLiabilesLong-term deblPrint.DoneIn thousands$4,1004,40073,00085086,35020,000

Journal entry is a primary entry that records the financial transactions initially. The transactions…

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The financial statements of International Foods for the

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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Question

The financial statements of International Foods for the year ended December 31, 2022, reported the following details of acquisitions (adapted)
(Click the icon to view the details of acquisitions.)
International Foods paid $131,000 cash for the acquisitions. Assume that the book value of the assets is equal to their fair value
Required
1. How much goodwill did International Foods purchase as part of the 2022 acquisitions?
2. Prepare the summary journal entry to record the acquisition at December 31, 2022.
3. Assume that, in 2023, the annual review of goodwill at December 31 identified a 20 percent impairment of the goodwill acquired in 2022. Prepare the journal entry required to record this
impairment
Requirement 1. How much goodwill did International Foods purchase as part of the 2022 acquisitions?
How much goodwill did International Foods purchase as part of the 2022 acquisitions?
Details of Acquisitions
Assets
Cash
Accounts receivable
Equipment
Intangibles
Liabiles
Long-term debl
Print.
Done
In thousands
$
4,100
4,400
73,000
850
86,350
20,000

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