Consider the Following Short Case as You Respond to the Question

question 54

Multiple Choice

Consider the following short case as you respond to the question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2/10, n/30.VLC paid the outgoing freight charge of $10.PRT paid the invoice within the discount period.The entries in VLC's accounting information system to record all the preceding events will include all of the following except:

• A)Debit Accounts Receivable, $300.Credit Sales, $300.
• B)Debit Cost of Goods Sold, $200.Credit Inventory, $200.
• C)Debit Delivery Expense, $10.Credit Cash, $10.
• D)Debit Cash, $294.Debit Inventory, $6.Credit Accounts Receivable, $300.

Calculate the goodwill arising from a business combination.

Prepare and interpret a consolidated statement of financial position.

Recognize the implications of acquiring net assets versus shares in a business combination.

Understand the reporting requirements for consolidated financial statements.