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This is a 9 part accounting question, Thanks! Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $28,000,000 in cash.
This is a 9 part accounting question, Thanks!
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $28,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $11, 289,000 27,000,eee 2,890,000 7.280.888 18,888, see Fair Value $14,200,000 33.600.888 3,800,000 7.290.000 17.800.000 Required: Calculate the amount paid for goodwill. (Enter your answer in millions (I.e. 5.000.000 should be entered as 5).) Amount paid for goodwill million Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10.700,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were: Accounts Receivable Equipment Patents Notes Payable Net assets Book Value $ 1,150,000 7,850, 000 170,000 (1.480.8e) $ 7,770,eee Fair Value $ 950,000 9.250.888 1,250,00 (1,488,888) $ 9,85e,eee Required: 1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places (Le.. $5.500.000 should be entered as 5.50).) Goodwill million 2 Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (.e., 5.550,000 should be entered as 5.55).) View transaction lat Journal entry worksheet Record the acquisition of Premium Meats. Note: Enter debits before credits Transaction General Journal Debit Credit Required Information (The following information applies to the questions displayed below.) Abbott Landscaping purchased a tractor at a cost of $44.000 and sold it three years later for $19,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $1,500 residual value. Tractors are included in the Equipment account. Required: 1. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction lat Journal entry worksheet Record the sale of equipment Note: Enter debits before credits Transaction General Journal Debit Credit Required information The following information applies to the questions displayed below.) Abbott Landscaping purchased a tractor at a cost of $44.000 and sold it three years later for $19,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $1,500 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $15.400 Instead of $19.600. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction llat Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits Transaction General Journal Debit Credit Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to test the operational assets of the division for possible Impairment. The test revealed the following: book value of the division's assets, $30.5 million; fair value of the division's assets. $24 million; sum of estimated future cash flows generated from the division's assets. $26 million What amount of Impairment loss should Vegetarian Delights record? (Enter your answer in millions rounded to 1 decimal place (L.e., 5.500,000 should be entered as 5.5).) Impairment loss million Required information (The following information applies to the questions displayed below.] Midwest Services, Inc., operates several restaurant chains throughout the Midwest. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets of the restaurants for possible Impairment. The relevant Information for these assets is presented below. Book value Estimated total future cash flows Fair value $9.5 million 7.8 million 6.6 million Required: 1. Determine the amount of the Impairment loss, if any. (Enter your answer in millions rounded to 1 decimal place (Le.. 5.500.000 should be entered as 5.5).) Impairment loss million Required information (The following information applies to the questions displayed below.] Midwest Services, Inc., operates several restaurant chains throughout the Midwest. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets of the restaurants for possible Impalment. The relevant Information for these assets is presented below. Book value Estimated total future cash flows Fair value $9.5 million 7.8 million 6.6 million 2 Determine the amount of the Impairment loss, if any, assuming that the estimated total future cash flows are $10.6 million and the fair value is $8.9 million. (Enter your answer in millions rounded to 1 decimal place (Le.. 5,500,000 should be entered as 5.5).) Impairment loss million Credit Debit $ 59,780 27, $ 3,280 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,300 24,280 165,000 15,800 230,000 64,99 $313,888 $313,888 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,580. The company estimates a residual value of $2,500 and a six-year service life. January 4 Pay cash on accounts payable, $10,5ee. January 8 Purchase additional inventory on account, $92,900. January 15 Receive cash on accounts receivable, $23,88e. January 19 Pay cash for salaries, $38,888 January 28 Pay cash for January utilities, $17,588. January 30 Sales for January total $230, eee. All of these sales are on account. The cost of the units sold is $120,88e. The following Information is available on January 31, 2021 a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued Interest revenue on notes recevable for January. d. Unpaid salaries at the end of January are $33.600. e. Accrued Income taxes at the end of January are $10.000. General Requirement General Ledger Journal Income Statement Trial Balance Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab these are shown as items 1 - 8) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the Trial Balance tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab these are shown as items 9-13). 3. Review the adjusted Trial Balance as of January 31, 2021, in the Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the General Journal' tab (these are shown as items 14 and 15). 7. Using the information from the requirements above, complete the 'Analysis' tabStep by Step Solution
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