Scribd
Upload
50 views5 pages

Business Combination Problem-Solution

Journal Entry and Goodwill

Uploaded by

Gioliane Picazo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
50 views5 pages

Business Combination Problem-Solution

Journal Entry and Goodwill

Uploaded by

Gioliane Picazo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 5

GIOLIANE KHARYL P.

TEN
BSA - 3
ACTIVITY 1
CASE #1

ACCOUNTS RECEIVABLE 10,000


MERCHANDISE INVENTORY 27,000
PLANT AND EQUIPMENT 69,000

CURRENT LIABILITY 20,000

LONG TERM LIABILITY 21,000

CASH 65,000

( TO SOLVE GOODWILL)
CONSIDERATION TRANSFERRED 65,000
FMV OF NA ACQUIRED 65,000
GOODWILL -

MARICON CORPORATION ENTRIES

MERCHANDISE INVENTORY 2,000

PLANT AND EQUIPMENT 8,000

GOODWILL 5,000

RETAINED EARNING 5,000

RECEIVABLE FROM ACQUIRER 48,000

CURRENT LIABILITIES 17,000

LONG TERM LIABILITIES 10,000


ACCOUNTS RECEIVABLE 8,000
MERCH. INVENTORY 17,000
PLANT AND EQUIPMENT 50,000
*

CASH 48,000
RECEIVABLE FROM ACQUIRER 48,000
*

PAID IN CAPITAL 10,000

RETAINED EARNINGS 23,000

ORDINARY SHARE CAPITAL 40,000

CASH 73,000

CASE #2

ACCOUNTS RECEIVABLE 10,000

MERCHANDISE INVENTORY 27,000

PLANT AND EQUIPMENT 69,000

GOODWILL 3,000

CURRENT LIABILITIES 20,000

LONG-TERM LIABILITIES 21,000

CASH 68,000

*
EXPENSES FOR BUS. COMBINAT 5,000
CASH 5,000

( TO SOLVE GOODWILL)

CONSIDERATION TRANSFERRED 68,000

FMV OF NA ACQUIRED 65,000

GOODWILL 3,000

CASE #3

ACCOUNTS RECEIVABLE 10,000

MERCHANDISE INVENTORY 27,000


PLANT AND EQUIPMENT 69,000

CURRENT LIABILITIES 20,000

LONG-TERM LIABILITIES 21,000

CASH 64,000

GAIN ON BARGAIN PURCHASE 1,000

EXPENSES OF BUSINESS COMBINATION 3,000

CASH 3,000

(TO SOLVE GOODWILL)

CONSIDERATION TRANSFERRED 64,000

FMV OF NA ACQUIRED 65,000

NEGATIVE GOODWILL -1,000

CASE #4

CASH 30,000

ACCOUNTS RECEIVABLE 10,000

MERCHANDISE INVENTORY 27,000

PLANT AND EQUIPMENT 69,000

CURRENT LIABILITIES 20,000

LONG-TERM LIABILITIES 21,000

ORDINARY SHARE CAPITAL 76,000

ADDITIONAL PAID-IN CAPITAL 19,000

APIC 3,000

CASH 3,000
(TO SOLVE GOODWILL)

CONSIDERATION TRANSFERRED 95,000

FMV OF NA ACQUIRED 95,000

NEGATIVE GOODWILL 0

CASE #5

CASH 30,000

ACCOUNTS RECEIVABLE 10,000

MERCHANDISE INVENTORY 27,000

PLANT AND EQUIPMENT 69,000

GOODWILL 25,000

CURRENT LIABILITIES 20,000

CONTINGENT LIABILITY 20,000

LONG-TERM LIABILITIES 21,000


ORDINARY SHARE CAPITAL 80,000

ADDITIONAL PAID-IN CAPITAL 20,000

(TO SOLVE GOODWILL)

TOTAL CONSIDERATION 120,000

FMV OF NA ACQUIRED 95,000

GOODWILL 25,000

CASE #6

CASH 30,000

ACCOUNTS RECEIVABLE 10,000


MERCHANDISE INVENTORY 27,000

PLANT AND EQUIPMENT 69,000

CURRENT LIABILITIES 20,000

LONG-TERM LIABILITIES 21,000

ORDINARY SHARE CAPITAL 75,600


APIC 18,900
GAIN ON BARGAIN PURCHASE 500
*
APIC 3,000
Cash 3,000

(TO SOLVE GOODWILL)


TOTAL CONSIDERATION 94,500
FMV OF NA ACQUIRED -95,000
NEGATIVE GOODWILL -500

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy