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Kipish [7]
3 years ago
10

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of busines

s on June 30, its Cash account shows a debit balance of $61,709. Easton's June bank statement shows $59,549 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 4,250 Outstanding checks $ 2,075 Check printing fee, not yet recorded by company $ 18 Interest earned on account, not yet recorded by the company $ 33
Business
1 answer:
goblinko [34]3 years ago
8 0

Answer:

                                         ADJUSTED BOOK BALANCE

Bank balance              $59,549      Book balance         $61,709

+ Deposit in transit      $4,250        Interest earned          $33

- Outstanding checks  <u>$2,075</u>        Bank service fees      <u>$18</u>

Adjusted book             <u>$61,724</u>                                    <u>$61,724</u>

balance

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Kosher Pickle Company acquires all the outstanding stock of Midwest Produce for $12.5 million. The fair value of Midwest's asset
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Answer:

Amount paid for goodwill=5.3 million

Explanation:

The expression for calculating goodwill is given by;

Goodwill = Consideration paid– Fair value of net identifiable assets

where;

Consideration paid=$12.5 million

Fair value of net identifiable assets=Midwest's assets-Midwest's liabilities

Midwest's assets=$8.5 million

Midwest's liabilities=$1.3 million

Fair value of net identifiable assets=(8.5 M-1.3 M)=7.2 million

Replace in the expression below;

Goodwill = Consideration paid– Fair value of net identifiable assets

Goodwill=12.5 M-7.2 M

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