Prepare the Rolling River Company balance sheet as of 1/1/17 assuming Rolling River Company purchased the Denmark
Question:
Prepare the Rolling River Company balance sheet as of 1/1/17 assuming Rolling River Company purchased the Denmark Wheel Company in an ASSET ACQUISITION for $14 million dollars. Provide enough detail for your CEO to understand the accounting.
Include the following:
Calculate (show your work) the amount of goodwill that will be recorded.
Provide the ASSET ACQUISTION journal entry (show separate from the schedule below).
Prepare a schedule showing
Pre-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances
Adjustments for the ASSET ACQUISTION journal entry
Post-Asset Acquisition 1/1/17 Rolling River Company balance sheet account balances
Other: Denmark Wheel Assets and Liabilities not included in the above balance sheet.
Patent $1,000,000 (Asset)
Brand Name $3,000,000 (Asset)
Lawsuit $1,700,000 (Liability)
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely