The Financial Statements for Goodwin, Inc

question 38

Multiple Choice

The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 20X1, prior to Goodwin's acquisition business combination transaction regarding Corr, follow (in thousands) : On December 31, 20X1, Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to acquire all of the outstanding shares of that company. Goodwin shares had a fair value of $40 per share. Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in stock issuance costs. Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
Compute the consolidated receivables and inventory for 20X1.

• A) $1,200.
• B) $1,515.
• C) $1,540.
• D) $1,800.
• E) $2,140.

Recognize the differences between the accrual basis and the cash basis of accounting.

Identify the characteristics and treatment of specific accounts such as Accumulated Depreciation, Prepaid Expenses, and Liabilities.

Grasp the concept of the time period assumption in accounting and its implications for the preparation of financial statements.

Understand the roles and purposes of different types of trial balances in the accounting cycle.

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D-Dimer

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