Answer:
$604,000
Explanation:
Given that,
Opening Closing
Inventory $112,000 $133,000
Accounts payable $55,000 $64,000
Cost of goods sold = $592,000
Cost of goods sold = Opening stock + Purchases - Closing stock
Purchases = Cost of goods sold - Opening stock + Closing stock
= $592,000 - $112,000 + $133,000
= $613,000
Bramble’s 2017 cash payments to suppliers:
= Opening accounts payable + Purchases - Closing accounts payable
= $55,000 + $613,000 - $64,000
= $604,000
Answer:
Explanation:
From the information povided:
(a) To compute the amount of goodwill paid by Chicago Corporation
Particulars Amount ($)
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.
<u />
Answer:
B
Explanation:
$10,000 - [$6,000 + ($9,000 - $3,000)] = ($2,000). Therefore, nothing is added back.
Explanation:
Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country.
People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.
Options:
- Smith Bus should be excused from performance under the clause for the rights on improper delivery
- Smith Bus should not be excused from performance because it did not act in good faith
- Smith Bus should be excused from performance under the test of commercial impracticability
- Smith Bus can exercise its right of anticipatory repudiation
Answer:
Correct answer is Option c.
<u>Smith Bus should be excused from performance under the test of commercial impracticability
</u>
Explanation:
In this case, Smith cannot fulfil the contract obligation due to an unforeseen event. Hence, Commercial impracticability shall apply.
