Answer:
Cullumber Company
Journal Entry:
Debit Loss on Goodwill Impairment $34,200
Credit Goodwill $34,200
To record the loss on goodwill impairment.
Explanation:
a) Data and Calculation:
Fair value = $820,800
Carrying value of net identifiable assets, including goodwill = $855,000
Goodwill impairment = $34,200 ($855,000 - $820,800)
b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly. The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom. Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment. By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.
Answer:
The correct answer is option c) payments are made by check. Control of cash disbursement is generally more effective when payments are made by check..
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A responsibility or possible loss that could materialize in the future based on how a particular occurrence plays out is known as a contingent liability.
<h3>What is contingent liability?</h3>
A responsibility or possible loss that could materialize in the future based on how a particular occurrence plays out is known as a contingent liability. Contingent liability can take the form of pending investigations, product warranties, and potential lawsuits. Liabilities that may be incurred by a company dependent on the result of an uncertain future event, such as the result of an ongoing lawsuit, are known as contingent liabilities.
When they are both probable and reasonably estimable as a "contingency" or "worst case" financial consequence, these obligations are not recorded in a company's records and are not displayed on the balance sheet. The kind and size of the contingent liabilities may be described in a footnote to the balance sheet. It is feasible to categories a loss's possibility as remote, improbable, or probable.
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If the price of basketballs goes up from $7.99 to $14.99, what can be expected from suppliers of basketballs as a result there will be an increase in quantity supplied.
In economics, quantity supplied represents the number of goods or services that a supplier produces and sells at a given market price. Supply is different from the actual supply (that is, total supply). This is because price changes affect how much suppliers actually put into the market.
A quantity supplied is the quantity of a product that a retailer intends to sell at a specific price, called the delivery quantity. A time period is also usually specified when describing shipping quantities. Example: If the price of an orange is 65 cents, he has a supply of 300 per week.
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