Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
Accounts Receivable 100000
Inventory 170000
Plant & Equipment 400000
Land 90000
Customer List 4000
Trade Names <u> 16000</u>
NET ASSETS (A) <u>780000</u>
<u />
Current liabilities 76000
Non-current liabilities <u>160000 </u>
NET LIABILITIES (B) <u> 236000</u>
∴
PURCHASE CONSIDERATION (A -B) 544000
<u>Less:</u> Cash Paid <u> 580000</u>
GODWILL <u> 36000 </u>
<u />
b)
In the books of Chicago Corporation, the Journal Entry to record the purchase of Naperville Company.
Account Name Dr. Cr.
Accounts Receivable A/C 100000
Inventory A/C 170000
Plant Equipment A/C 400000
Land A/C 90000
Customer List A/C 4000
Trade Names A/C 16000
Goodwill A/C 36000
Current liabilities A/C 76000
Non-Current Liabilities A/C 160000
Cash A/C 580000
c)
The minimum required amount of goodwill that Chicago can amortize by the end of 2020 is $3600.This is because the amortization can take place for a period of 10 years.
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Answer:
short, innovation
Explanation:
Manufacturing of short product cycle have the innovation requires for competency compare to those companies that manufacture on long product cycle.
It should be noted that Companies that manufacture products with a very short product life cycle have innovation as their core competency.
Answer:
It should sell Product A as it is.
the impact of procees further is a loss for 16,000
Explanation:
We will check if the further process is a viable option for hte company's cost structure
additional revenue
(14 - 8) x 24,000 = 144,000
additonal cost (160,000)
differential (16,000)
We can sale the poudns at 8 or process further to receive 14
the differential revenue is 14 - 8 = 6 per pound
then we multiply this by the amount of pounds we produce.
This give us an additional revenue for 144,000
Our additional cost ofr this process are 160,000
The cost are greater than the proceeds, it is not viable. It should sell Product A as it is.
Further process generates a loss for 16,000
Answer:
![\left[\begin{array}{cccc}-&Budget&Variance&Actual\\IL&10,000&700&9,300\\IM&11000&-3,800&14,800\\Utilities&7,400&-2,400&9,800\\Maintenance&6,000&1,200&4,800\\Total \: Variable&34,400&-4,300&38,700\\Supervisor&35,400&0&35,400\\Depreciation&7,100&0&7100\\PT and insurance&7,700&-600&8,300\\Maintenance&6,000&0&6,000\\Total \: Fixed&56,200&-600&56,800\\Total \: MO&90,600&-4,900&95,500\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26Budget%26Variance%26Actual%5C%5CIL%2610%2C000%26700%269%2C300%5C%5CIM%2611000%26-3%2C800%2614%2C800%5C%5CUtilities%267%2C400%26-2%2C400%269%2C800%5C%5CMaintenance%266%2C000%261%2C200%264%2C800%5C%5CTotal%20%20%5C%3A%20Variable%2634%2C400%26-4%2C300%2638%2C700%5C%5CSupervisor%2635%2C400%260%2635%2C400%5C%5CDepreciation%267%2C100%260%267100%5C%5CPT%20and%20insurance%267%2C700%26-600%268%2C300%5C%5CMaintenance%266%2C000%260%266%2C000%5C%5CTotal%20%5C%3A%20Fixed%2656%2C200%26-600%2656%2C800%5C%5CTotal%20%5C%3A%20MO%2690%2C600%26-4%2C900%2695%2C500%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
We list them and subtract budget - actual
When actual is greater than budget the variance is negatine.
While budget being lower than actual is considered a positive variance.
Answer:
c. $180 in 2019
Explanation:
The company uses the accrual method of accounting. Under the method, revenues are reported on the income statement when they are earned, regardless of when the money is actually received or paid.
On July 1, 2017, the company sold a one-year membership and a two-year membership. In 2017, The Maroon & Orange Gym, Inc. has provided service for 6 months of each contracts.
Gross income of one-year membership in 2017 = $40 x 6 = $240
Gross income of one-year membership in 2017 = $30 x 6 = $180
Total income = $240 + $180 = $420
In 2018, the company continued to provide service for 6 months remaining of one-year membership and 12 months remaining of two-year membership.
Gross income of one-year membership in 2018 = $40 x 6 = $240
Gross income of one-year membership in 2018 = $30 x 12= $360
Total income = $240 + $360 = $600
In 2019, the company completed providing service for 6 months remaining of two-year membership.
Gross income in 2019 = $30 x 6= $180
