Acquirer's Entrances at Date of Obtaining.


41 views
Uploaded on:
Category: People / Lifestyle
Description
Acquirer\'s Entries at Date of Acquisition. . Step 4. Dr Inventory 5,000Dr Equipment12,500Dr Furniture13,000Dr Vehicle20,000Dr Goodwill 25,518Cr Accounts Payable 4,000Cr Provision for Compensation 2,500Cr Payable to Pizza Limited 68,018Cr Legal Costs Payable 1,500.
Transcripts
Slide 1

Step 4 Acquirer\'s Entries at Date of Acquisition The fundamental type of the diary passage is Dr Assets Dr Goodwill Cr Liabilities accepted Cr Payable to Acquiree Cr Other Associated Payables Recorded at reasonable esteem (from Step 1) From Step 3 Purchase Consideration (from Step 2)

Slide 2

Step 4 Acquirer\'s Entries at Date of Acquisition Dr Inventory 5,000 Dr Equipment 12,500 Dr Furniture 13,000 Dr Vehicle 20,000 Dr Goodwill 25,518 Cr Accounts Payable 4,000 Cr Provision for Compensation 2,500 Cr Payable to Pizza Limited 68,018 Cr Legal Costs Payable 1,500

Slide 3

Step 4 Acquirer\'s Entries at Date of Acquisition Burgers Ltd will pass the accompanying diary section when it exchanges the shares to Pizza Ltd Dr Payable to Pizza Ltd 50,000 Cr Share Capital 50,000 Total Purchase Consideration is $68,018. Burgers Ltd has paid $50,000 of this, leaving an adjust of $18,018. This adjust speaks to the sum payable in one year.

Slide 4

Step 4 Acquirer\'s Entries at Date of Acquisition Burgers Ltd should likewise pay the Legal expenses Dr Legal Costs Payable 1,500 Cr Cash 1,500 End Step 4

Recommended
View more...