(a) Introduction: If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill . To choose: Prepare the entry to record this acquisition in Mudcat’s Journal.

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

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KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

Accounting Question

REQUIRED Study the information given below and answer the following questions. Where discount factors are required use only the four decimals present value tables that appear after the formula sheet or in the module guide. Ignore taxes. 5.1 Calculate the Accounting Rate of Return on average investment of the second alternative (expressed to two decimal places). 5.2 Determine which of the two investment opportunities the company should choose by calculating the Net Present Value of each alternative. Your answer must include the calculation of the present values and NPV. 5.3 Calculate the Internal Rate of Return of the first alterative (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The management of Bentall Incorporated is considering two investment opportunities: (5 marks) (9 marks) (6 marks) The first alternative involves the purchase of a new machine for R900 000 which…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Answer 6

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

Answer 7

Chapter 7, Problem 75BPSB

To determine

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

Answer 8

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

Answer 9

To determine

(b)

Introduction:

These incorporate the cost of the asset, the rescue estimation of the asset, the normal existence of the asset and more. Aside from these, any type of expansion or deletion from the asset, amid a particular period, additionally influences the viable estimation of depreciation which will be charged to the profit and loss account.

To choose:

Calculate the amount of depletion of natural gas resource.

Answer 10

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

Answer 11

To determine

(c)

Introduction:

A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company’s charge and credit balances. The journal entry can comprise of several chronicles, each of which is either a charge or a credit.

To choose:

Prepare journal entry to record depletion for the 2,500,000 cubic feet of natural gas recovered and sold.

Answer 12

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

Answer 13

To determine

(d)

Introduction:

Goodwill is the reputation or name of the company. Goodwill is the built-up notoriety of a business viewed as a quantifiable resource and determined as a component of its esteem when it is sold. Goodwill is impracticable assets.

To choose:

Is goodwill amortized? Explain your reasons.

Answer 14

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Answer 15

To determine

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 7 - Prob. 1DQ Ch. 7 - Prob. 2DQ Ch. 7 - How does the cost concept affect accounting for...Ch. 7 - Prob. 4DQ Ch. 7 - Prob. 5DQ Ch. 7 - Prob. 6DQ Ch. 7 - What factors must be known or estimated in order...Ch. 7 - How do the accelerated and straight-line...Ch. 7 - Prob. 9DQ Ch. 7 - Prob. 10DQ

(a) Introduction: If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill . To choose: Prepare the entry to record this acquisition in Mudcat’s Journal.

Solution Summary: The author explains how a journal entry, in accounting, is the logging of the transaction in an accounting journal that demonstrates the company's charge and credit balances.

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?

Want to see the full answer?

Chapter 7 Solutions

(a) Introduction: If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill . To choose: Prepare the entry to record this acquisition in Mudcat’s Journal.

Solution Summary: The author explains how a journal entry, in accounting, is the logging of the transaction in an accounting journal that demonstrates the company's charge and credit balances.

(a) Introduction: If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill. To choose: Prepare the entry to record this acquisition in Mudcat’s Journal.

(e) Introduction: All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized. To choose: Why land is capitalized separately form the natural gas reserves?

Want to see the full answer?

Chapter 7 Solutions

(a)

Introduction:

If a company purchases another business and the purchase consideration was paid more than acquired assets, then extra amount should be recorded as Goodwill.

To choose:

Prepare the entry to record this acquisition in Mudcat’s Journal.

(e)

Introduction:

All assets should be capitalized separately if company acquire the assets or make expense on the assets for the purpose increase capacity then all expense should be capitalized.

To choose:

Why land is capitalized separately form the natural gas reserves?