11-Fall 21 Part 1 VENING (10 Points) Question #2 Space Company purchased Uniweb Corporation on November 30, 2021. On the date of the acquisition the Balance Sheet of Uniweb Corporation was as follows: Uniweb Corporation Balance Sheet November 30, 2021 Cash Accounts Receivable (gross) Notes Receivable Prepaid Rent Investments Land Equipment Copyrights Total Assets $189,000 165,000 133,000 15,000 120,000 199,000 146,000 98,000 $1,065,000 Wages Payable Interest Payable Notes Payable Bonds Payable Mortgage Payable Retained Earnings Common Stock Treasury Stock Total Liabilities and Owner's Equity $ 36,000 24,000 120,000 170,000 180,000 220,000 330,000 (15,000) $1,065,000 Additional Information: The above balance sheet amounts shown reflects the approximate market values except: 1) The allowance for doubtful accounts was determined to be $6,000 2) Notes receivable current market value was $110,000 3) Prepaid rent was valued at $16,000 4) Land was appraised at $245,000. 5) Equipment was valued at $135,000. 6) Copyrights present values were $120,000. 7) Wages payable should be $28,000. 8) The company's interest payable correct value should be $32,000. 9) Bonds payable present value was $180,000. 10) Mortgage payable was verified at a value of $195,000 a (3 Points) (2 Points) Required: 1) Assuming that Space 2 Company pays $650,000 for Uniweb Corporation: A) Compute the value of the implied goodwill and the amount of net cash. B) Prepare the journal entry to record the acquisition 2) Assuming that Space Company pays $529,000 for Uniweb Corporation: A) Compute the value of the implied goodwill and the amount of net cash. B) Prepare the journal entry to record the acquisition. (3 Points) (2 points)