Balance Sheet of Subco. as of 1st January 20X1 is as under: ASSETS Current Assets Cash...

 

Transcribed Image Text:

Balance Sheet of Subco. as of 1st January 20X1 is as under: ASSETS Current Assets Cash Accounts Receivables Inventory Machinery Automobiles Investments Buildings Liabilities Current Liabilities 2,190 Accounts Payable 43,840 21,450 Salaries Payable 7,140 9,540 Income tax payable 11,680 23,840 Bank Loan 97,480 18,150 Shareholders' Equity 57,100 14,650 127,420 217,240 217,240 On the above date, Holdco acquired Subco for a sum of $74,000. The assets and liabilities of Subco were revalued as under: Inventory Automobiles Investments Machinery Incometax payable Salaries payable You are required to $ 7,640.00 $ 16,860.00 $ 15,975.00 $ 18,630.00 $14,360.00 $ 11,180.00 1) calculate the amount of Goodwill / Bargain Purchase 2) prepare a journal entry on day one of acquisition by Holdco.. Balance Sheet of Subco. as of 1st January 20X1 is as under: ASSETS Current Assets Cash Accounts Receivables Inventory Machinery Automobiles Investments Buildings Liabilities Current Liabilities 2,190 Accounts Payable 43,840 21,450 Salaries Payable 7,140 9,540 Income tax payable 11,680 23,840 Bank Loan 97,480 18,150 Shareholders' Equity 57,100 14,650 127,420 217,240 217,240 On the above date, Holdco acquired Subco for a sum of $74,000. The assets and liabilities of Subco were revalued as under: Inventory Automobiles Investments Machinery Incometax payable Salaries payable You are required to $ 7,640.00 $ 16,860.00 $ 15,975.00 $ 18,630.00 $14,360.00 $ 11,180.00 1) calculate the amount of Goodwill / Bargain Purchase 2) prepare a journal entry on day one of acquisition by Holdco..

Answer rating: 100% (QA)

1 Calculation of GoodwillBargain Purchase Before Revaluation Total Assets 2190 Cash 21450 Accounts R... View the full answer