Comments on: Recording Goodwill on the books http://blog.reallifeaccounting.com/2005/11/29/recording-goodwill-on-the-books/ Sharing accounting knowledge step-by-step Sat, 03 Jul 2010 00:53:09 +0000 hourly 1 http://wordpress.org/?v=3.0 By: John http://blog.reallifeaccounting.com/2005/11/29/recording-goodwill-on-the-books/comment-page-1/#comment-5528 John Sun, 21 Feb 2010 17:07:53 +0000 http://www.reallifeaccounting.com:8080/blog/2005/11/29/recording-goodwill-on-the-books/#comment-5528 Debbie: Maybe all they asking is for you to journalize goodwill by debiting goodwill under Other Assets and crediting Cash (or however they bought the goodwill). John Debbie: Maybe all they asking is for you to journalize goodwill by debiting goodwill under Other Assets and crediting Cash (or however they bought the goodwill).

John

]]> By: Debbie http://blog.reallifeaccounting.com/2005/11/29/recording-goodwill-on-the-books/comment-page-1/#comment-5517 Debbie Sun, 21 Feb 2010 04:23:21 +0000 http://www.reallifeaccounting.com:8080/blog/2005/11/29/recording-goodwill-on-the-books/#comment-5517 I'm taking AccountingII online and here is one our questions. I think it's a trick question. It describes the acquisition of timber rights and intangible assets during the current year ended December 31: a. Timber rights on a tract of land were purchased for $648,000 on July 5. The stand of timber is estimated at 3,600,000 board feet. During the current year, 1,200,000 bft of timer were cut and sold. I got that part done and calculated. Here's the trick. b. Goodwill in the amount of $27,000,000 was purchased on January 7. It wants us to journalize these entries. Our book specifically states that "goodwill is not amortized." If the problem doesn't state anything else, how do we journalize this? I know I probably won't receive an answer in time for this assignment, but it's still bugging me. Thanks for any help or insight you can provide. Deb I’m taking AccountingII online and here is one our questions. I think it’s a trick question.
It describes the acquisition of timber rights and intangible assets during the current year ended December 31:
a. Timber rights on a tract of land were purchased for $648,000 on July 5. The stand of timber is estimated at 3,600,000 board feet. During the current year, 1,200,000 bft of timer were cut and sold.
I got that part done and calculated. Here’s the trick.
b. Goodwill in the amount of $27,000,000 was purchased on January 7.
It wants us to journalize these entries. Our book specifically states that “goodwill is not amortized.”
If the problem doesn’t state anything else, how do we journalize this?
I know I probably won’t receive an answer in time for this assignment, but it’s still bugging me.
Thanks for any help or insight you can provide.
Deb

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