Required information The following information applies to the questions displayed below) The notes to a recent annual report from Suzie's Shoe Corporation indicated that the company acquired another company. Steve's Shoes, Inc Assume that Suzie's acquired Steve's Shoes on January 5 of the current year. Suzie's acquired the name of the company and all of its assets for $515,000 cash. Suzie's did not assume the liabilitles. The transaction was closed on January 5 of the current year, at which time the balance sheet of Steve's Shoes reflected the following book values. An independent appraiser estimated the following market values for the assets. Market Value $ 48,000 190,000 42,900 17,000 Steve's Shoes, Inc. January 5 of the current Year Book Value Accounts receivable (net) $ 48,000 Inventory 211,000 Fixed assets (net) 32,600 Other assets 7,000 Total assets $ 298,000 Liabilities $ 61,000 Stockholders' equity 237,000 Total liabilities and stockholders $ 298,00 equity 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31) for the following items acquired from Steve's Shoes: (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a Depreciation of the fixed assets (straight line), assuming an estimated remaining useful life of 11 years and no residual value. b. Goodwill (an Intangible asset with an indefinite life) View transaction list Required information 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31) for the following items acquired from Steve's Shoes: (no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) Depreciation of the fixed assets (straight line), assuming an estimated remaining useful life of 11 years and no residual value. b. Goodwill an intangible asset with an indefinite life) View transaction list Journal entry worksheet 1 2 Record the straight-line depreciation of fixed assets, assuming an estimated remaining useful life of 11 years and no residual value. Note: Enter det bare credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal 2. Compute the adjustments that Suzie's Shoes Corporation would make at the end of the current year (ending December 31) for the following items acquired from Steve's Shoes: (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Depreciation of the fixed assets (straight line), assuming an estimated remaining useful life of 11 years and no residual value. b. Goodwill (an intangible asset with an indefinite life). View transaction list Journal entry worksheet 1 Record amortization of the goodwill (an intangible asset with an indefinite life). Note: Enter debts before credits General Journal Debit Credit Transaction b. Record entry Clear entry View general journal
