Finance/Accounting Assignment: Business Combination with Goodwill
Williams Corporation pays cash of $250,000 to acquire the net assets of Frank Company on December 31, 20XX. The balance sheets of Williams Corporation and Frank Company, as well as the fair value information for Frank Company, is provided on an Excel spreadsheet.
• Prepare the journal entry required by Williams Corporation when it acquires Frank Company's net assets.
• Prepare a balance sheet for William Corporation immediately following the acquisition of Frank Company.
• Prepare the journal entry required by Williams Corporation if it acquires all of Frank Company's common stock (instead of Frank Company's net assets) for $250,000.
For this assignment, download the Excel spreadsheet, and use the Tab function at the bottom to answer each of these questions. Note that you can either use the Tab function to answer each question, individually, or put the answers to each of the questions below on one Tab. Use Excel functions to show your calculations for any journal entry requiring a dollar calculation or dollar amount. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons.
Use Excel formulas to make or evidence each of your calculations of each/any dollar amounts. Please do not enter any dollar amounts, directly, for the answers to the Requirements unless it is unavoidable for obvious reasons.
Requirements:
a) Show calculations for all questions.
b) Support the writing portion of the assignment (if applicable) with credible sources.
c) Use terms, evidence, and concepts from class readings, including professional business language.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
References
Chapters 1 & 2 in Advanced Financial Accounting
PWC. (2017). Simplifying goodwill impairment testing.
Deloitte. (2017). FASB eliminates Step 2 from the goodwill impairment test.
Chapter 1 & Chapter 2 in Advanced Financial Accounting, PowerPoint presentations
FASB. (2016). FASB accounting standards update: Investments-Equity method and joint ventures (Topic 323).