An acquirer made the following entry to report an acquisition: Debit Credit Tangible assets 4,000 Customer lists
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Question:
An acquirer made the following entry to report an acquisition:
|
| Debit | Credit |
Tangible assets |
| 4,000 | |
Customer lists |
| 600 | |
Goodwill |
| 1,000 | |
| Liabilities | 2,000 | |
| Cash | 3,600 |
Six months after the acquisition, the customer lists are determined to be worthless.
Using a T-account template:
Document the acquisition entry
Prepare the entry to recognize that the customer lists are deemed worthless and label it “b”.
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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