Compute the amount of goodwill acquired by winans

Reference no: EM133650517

Answer the followings with necessary steps .

Question 1. P Company bought some assets from Gray construction, which was disposing of its road construction division. The assets purchased and their appraisal values are given below.

Required: Assuming that P Company paid Birr 500000 for all the assets acquired, prepare a schedule showing the allocation of total cost among the assets acquired.

Question 2. Express company has a delivery truck that cost Bin 48000 and has been depreciated Birr 20000. Record journal entries under the following assumptions

A) It was retired as having no value
B) It was sold for Birr 31000
C) It was sold for Birr 18000

Question 3. Gershwin Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of Br. 120,000 on April 1, 2010. The franchise grants Gershwin the right to sell certain products and services for a period of 8 years. Prepare Gershwin's April 1 journal entry and December 31 adjusting entry.

Question 4. On September 1, 2010, Winans Corporation acquired Aumont Enterprises for a cash payment of Br. 700,000. At the time of purchase, Aumont's balance sheet showed assets of Br. 620,000, liabilities of Br. 200,000, and owners' equity of Br. 420,000. The fair value of Aumont's assets is estimated to be Br. 800,000. Compute the amount of goodwill acquired by Winans.

Question 5. H Company was shed for permitting local residents to be exposed to toxic chemicals from its plant. The company lost its suit. The lawyers concluded that it is probable that the company will be liable for a judgment costing any where from Birr 80000 to Bin 120000, but no specific amount is estimable How much litigation liability the company should accrue?

Question 6. XYZ Company made purchases of a particular product in the month ended Sene 30 2000 as follows:

Sene 1, Beginning inventory 200 units @ Birr 10

Sene 14, Purchased 350 units @ Birr 15

Sene 20, Purchased 500 Units @ Birr 20

Sene 26, Purchased 700 Units @ Birr 25

XYZ Company made sales on the following dates at $ 40 per Unit:

Sene 10, 190 Units

Sene 15, 240 Units

Sene 22, 400 Units

Total Sales 830 Units

Required

XYZ uses a perpetual system. Determine the cost assigned to the cost of goods sold, end inventory, and the gross profit amount under each of the following:

A. The FIFO Method

B. The LIFO method and

C. The moving average method

Reference no: EM133650517

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