User Account

All Pages

Prepare the journal entry to account for any impairment

Assignment Help Financial Accounting
Reference no: EM133001527

Question - Pete Limited acquired Samson Limited on 1 July 20X7 for cash of $3,500,000. At that date, Samson Limited's net identifiable assets had a fair value of $2,900,000. The fair value of the net identifiable assets of Samson Limited are determined as follows:

Customer List $25,000

Machinery $725,000

Buildings $750,000

Land $1,500,000

$3,000,000

Less: Bank Loan $100,000

Net Assets $2,900,000

At the end of the reporting period of 30 June 20X8, the management of Pete Limited determines that the recoverable amount of the cash-generating unit, which is considered to be Samson Limited, totals $2,400,000. The carrying amount of the net identifiable assets of Samson Limited, which excludes goodwill, has not changed since acquisition and is $2,900,000.

Required -

a) Prepare the journal entry to account for any impairment of goodwill.

b) What is the difference between an unidentifiable intangible asset and an identifiable intangible asset?

Reference no: EM133001527

Questions Cloud

Prepare the consolidation worksheet adjusting entries : Prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2021
Prepare Acquisition analysis as at July : On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000. Prepare Acquisition analysis as at July
Case study - sea pines villa : Case Study - Sea Pines Villa: Are They Ready For The Big One - You fill in the formulas here for the receipts and payments
Make the corrected unadjusted trial balance at june : The balance of Advertising Expense is $600, but it was listed as $400 on the trial balance. Make the corrected unadjusted trial balance at June
Prepare the journal entry to account for any impairment : Pete Limited acquired Samson Limited on 1 July 20X7 for cash of $3,500,000. Prepare the journal entry to account for any impairment of goodwill
Calculate the profit or loss on the sale : In year 1, Expert Chemicals purchased a forklift truck for $300 ooo, and at the end of year 3 sold it for $55 530. Calculate the profit or loss on the sale
Prepare general journal entries to record transactions : Prepare General Journal entries to record the following periodic system merchandising transactions for Safety Merchandising
Prepare the appropriate journal entry to account : The remainder will not be ready for shipment until January of the following year. Prepare the appropriate journal entry to account for DTC July 31, 2012
What equation can be designed : Carl is running his newly established business - a coffee shop. During the first month of operation, he observed that each cup of coffee requires:

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd