Avril, Inc., sells electronics and appliances. The excerpts that follow are adapted from Avrils financial statements for

Question:

Avril, Inc., sells electronics and appliances. The excerpts that follow are adapted from Avril€™s financial statements for 2012 and 2011.

Avril, Inc., sells electronics and appliances. The excerpts that

Requirements
1. How much was Avril€™s cost of plant assets at February 28, 2012? How much was the book value of plant assets? Show computations.
2. The financial statements give three evidences that Avril purchased plant assets and goodwill during fiscal year 2012. What are they?
3. Prepare T-accounts for Property, Plant, and Equipment; Accumulated Depreciation; and Goodwill. Then show all the activity in these accounts during 2012. Label each increase or decrease and give its dollar amount. During 2012, Avril sold plant assets that had cost the company $79 million (accumulated depreciation on these assets was $65 million). Assume goodwill was not impaired during 2012.
4. (Independent of the information in Requirement 3) Avril reviews its assets for impairment annually. On February 28, 2012, the fair value of the goodwill is estimated at $450 million. Prepare the journal entry to record theimpairment.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

Question Posted: