You are to buy an existing business which has assets valued at Buildings 50,000, Motor vehicles 15,000,

Question:

You are to buy an existing business which has assets valued at Buildings £50,000, Motor vehicles £15,000, Fixtures £5,000 and Inventory £40,000. You are to pay £140,000 for the business.

This means that

(A) You are paying £40,000 for Goodwill

(B) Buildings are costing you £30,000 more than their value

(D) You have made an arithmetical mistake

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Frank Woods Business Accounting An Introduction To Financial Accounting

ISBN: 9781292365435

15th Edition

Authors: Alan Sangster, Lewis Gordon, Frank Wood

See More Books

Question Posted: Mar 04, 2024 09:23 AM

See More Questions

You are to buy an existing business which has assets valued at buildings 50,000, Motor vehicles 15,000, Fixtures 5,000 and Stock 40,000. You are to pay 140,000 for the business. This means that (A)...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
It happens all too often. As a market researcher, you slave away for countless hours in pursuit of insightful data but, to your shock, your research report flops and your data are dead in the water....
a. Using the data for Fincorp, determine the cash flow from assets, cash flow to bondholders, cash flow to shareholders, and financing flows. Treat interest as a financing flow. b. Assuming that...
For the current year, Maple Corporations book income before federal income tax was $100,000. Included in this $100,000 were the following: Provision for state income tax $1,000 Interest earned on...
Refer to the event tree in Figure 3.10 and the data in Table 3.6. Suppose the company operating this CSTR decides to hire an expert operator in response to the runaway reaction in April. This...
Tim Snyder and Jay Wise have decided to form a partnership. They have agreed that Snyder is to invest $30,000 and that Wise is to invest $40,000. Snyder is to devote full time to the business, and...
What steps are involved when monitoring performance? Give three (3) good key performance indicators in relation to your role in the organisation. 9. What are the different ways an organisation can...
Dylan Reyes is the accountant for Heads Up Hat Corporation. In preparing the payroll for the semimonthly pay period ending December 15, Dylan notices that some of the year-to-date executives salaries...
During the year a company revalued its freehold land from its original cost of 295,000 to its current market value of 1.1m. In the companys statement of cash flows, this revaluation will: (A) Be...
In what order are the three sections of a statement of cash flows normally presented? (A) Investing activities, financing activities, operating activities (B) Investing activities, operating...
Why are publicly traded companies in the United States required to prepare interim reports on a quarterly basis?
Paradise Realty Co. pays weekly salaries of $25,500 on Friday for a five-day workweek ending on that day. Journalize the necessary adjusting entry at the end of the accounting period, assuming that...
The adjusting entry for accrued wages was omitted at July 31, the end of the current year. Indicate which items will be in error, because of the omission, on (a) the income statement for the current...
The balance in the unearned fees account, before adjustment at the end of the year, is $18,000. Journalize the adjusting entry required if the amount of unearned fees at the end of the year is $3,600.
On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fixs chart of accounts, the supplies account is No. 15, and the accounts payable account is No. 21. a....
Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit:...
A corporation issued $6,000,000 of 20-year bonds for cash at 104. How would the transaction be reported on the statement of cash flows?
Les has collected stamps in his spare time for years. He purchased many of his stamps at a price much lower than the current market value. Les recently lost his job as a carpenter. Since his wife...
Could one individual be a great leader in government, a corporation, or a nonprofit? Why or why not?
Read Alternative Organizing and (In)Visibility: Managing Tensions of Transparency and Autonomy in a Nonprofit Organization by Peter Jensen and Rebecca Meisenbach. Why do some nonprofit organizations...
Read Alternative Organizing and (In) Visibility: Managing Tensions of Transparency and Autonomy in a Nonprofit Organization by Peter Jensen and Rebecca Meisenbach. According to Jensen and Meisenbach,...
Case-3 Ram Bahadur's Choice retirement he received Rs.12 lacks as gratuity. He is father of three sons-ShyamBahadur(26), HarkaHahadur(20) and GokulBahadur(16). His wife Ram Bahadur Thapa recently...
Hanover Limited has undertaken a $10 million contract to repair a railway tunnel. The contract was signed on 1 April 2016 and the work is expected to take two years. This is a contract where...
Playfair Limited is a company that purchases toys from abroad for resale to retail stores on credit. The company is concerned about its inventory (stock) management operations. It is considering...

You are to buy an existing business which has assets valued at Buildings 50,000, Motor vehicles 15,000,

Question:

Step by Step Answer:

Frank Woods Business Accounting An Introduction To Financial Accounting

Students also viewed these Business questions