Question - September 1999: E&P purchased the net assets of ShoeNet for $300,000 on September 1, 1999. The value of ShoeNet is as follows:
Cash $15,000
Receivables $10,000
Inventories $70,000
Equipment $130,000
Accounts payable -$25,000
Calculate the goodwill and create the journal entries for the purchase of ShoeNet by E&P.