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Working Papers 1

The document contains multiple problems detailing the purchase of businesses, including the assets and liabilities acquired and the accounting entries required to record the transactions. It provides value analyses showing the total price paid and fair value of net assets, and calculates goodwill or gain on the purchases. The problems vary in whether the businesses were purchased for cash or by issuing stock.

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davidinmexico
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23 views6 pages

Working Papers 1

The document contains multiple problems detailing the purchase of businesses, including the assets and liabilities acquired and the accounting entries required to record the transactions. It provides value analyses showing the total price paid and fair value of net assets, and calculates goodwill or gain on the purchases. The problems vary in whether the businesses were purchased for cash or by issuing stock.

Uploaded by

davidinmexico
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Problem 1-1 Purchase Price of $500,000

Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Other current assets Equipment Trademark Current liabilities Bonds payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

Purchase Price of $300,000 Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Other current assets Equipment Trademark Current liabilities Bonds payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

Problem 1-2 Vicker


Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Land Building Current liabilities Bonds payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

Kendal Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Land Building Current liabilities Bonds payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

Problem 1-4 Purchased by issuing stock


Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Land Building Accounts payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

Purchased for cash


Value Analysis Total Price Paid Total Fair Value of Net Assets

Accounts receivable Inventory Land Building Accounts payable Others

Total Fair Value of Net Assets Goodwill Gain on Purchase of Business Entry Account Name

Debit

Credit

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