Arizona Corporation acquired the business Data Systems for $315,000 cash and assumed all liabilities at the...
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Arizona Corporation acquired the business Data Systems for $315,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $330,000, liabilities of $18,000, and stockholders' equity of $312,000. An appraiser assessed the fair market value of the tangible assets at $305,000 and liabilities at $18,000 at the date of acquisition. Arizona Corporation's financial condition just prior to the acquisition is shown in the following statements model. Assets Tangible Cash 530,000 Assets NA Required + Balance Sheet Income Statement = Goodwill = Liabilities + NA NA + Stockholders' Equity 530,000 Revenue - Expenses = NA - = Net Income NA Statement of Cash Flows a. Compute the amount of goodwill acquired. b. Record the acquisition in a financial statements model. Arizona Corporation's financial condition Just prior to the acquisition is shown In the financial statements model. d. Record the acquisition in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required D Compute the amount of goodwill acquired. Goodwill < Required A Required B > Required A Required B Required D Record the acquisition in a financial statements model. Arizona Corporation's financial condition just prior to the acquisition is shown in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Event Acquisition ARIZONA CORPORATION Horizontal Statements Model Balance Sheet Assets Cash Tangible Assets 530,000+ + + + + = + Income Statement Statement of Cash Liabilities + Stockholders' Equity Net Revenue Flows Expenses Income Goodwill 530,000 < Required A Required D > Show less Required A Required B Required D Record the acquisition in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record cash paid for acquisition of assets and liabilities. Note: Enter debits before credits. Event Acquisition General Journal Debit Credit Record entry Clear entry View general journal > Arizona Corporation acquired the business Data Systems for $315,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $330,000, liabilities of $18,000, and stockholders' equity of $312,000. An appraiser assessed the fair market value of the tangible assets at $305,000 and liabilities at $18,000 at the date of acquisition. Arizona Corporation's financial condition just prior to the acquisition is shown in the following statements model. Assets Tangible Cash 530,000 Assets NA Required + Balance Sheet Income Statement = Goodwill = Liabilities + NA NA + Stockholders' Equity 530,000 Revenue - Expenses = NA - = Net Income NA Statement of Cash Flows a. Compute the amount of goodwill acquired. b. Record the acquisition in a financial statements model. Arizona Corporation's financial condition Just prior to the acquisition is shown In the financial statements model. d. Record the acquisition in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required D Compute the amount of goodwill acquired. Goodwill < Required A Required B > Required A Required B Required D Record the acquisition in a financial statements model. Arizona Corporation's financial condition just prior to the acquisition is shown in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Leave blank to indicate that an element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.) Event Acquisition ARIZONA CORPORATION Horizontal Statements Model Balance Sheet Assets Cash Tangible Assets 530,000+ + + + + = + Income Statement Statement of Cash Liabilities + Stockholders' Equity Net Revenue Flows Expenses Income Goodwill 530,000 < Required A Required D > Show less Required A Required B Required D Record the acquisition in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record cash paid for acquisition of assets and liabilities. Note: Enter debits before credits. Event Acquisition General Journal Debit Credit Record entry Clear entry View general journal >
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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