Multiple Responses - Module 2

For question 1, Write your one valued learning that you got from the
course. Put "1" before your answer. 
For question 2, Write your two questions (in QUESTION FORM)  from what
you read/watched so far according to the level of importance. Number them
from 1-2 in each boxes respectively, with 1 being the most
important. (Ex: Box 1 <1. What are the journal entries for cash sale
transactions? > Box 2 <2. answer>) 
For question 3, Write your three takeaways from what you read/watched so
far according to the level of importance. Number them from 1-3 in each
boxes respectively, with 1 being the most important. (Ex: Box 1 <1. I
learned about accounting for small businesses > Box 2 <2. answer> Box 3 <3.
answer>)  

Case:
On April 7, 2019, Ronselle Co. issued 40,000 share with par value of P10 for P620,000
for the net assets of LJ Corp. in a transaction properly accounted as a purchase. The
recorded assets and liabilities of LJ Corp. on April 1, 2019 are:
        Cash                                                                                                               60,000
        Inventory                                                                                                  180,000
        Properly and equipment (net of accumulated
            depreciation of P220,000)                                                          320,000
       Goodwill                                                                                                     100,000
       Liabilities                                                                                                   (120,000)
       Net assets                                                                                                 540,0000
On April 1, 2009, LJ’s inventory had a fair value of P150,000 and the property and
equipment (net) had a fair value of P380,000. What is the amount of goodwill resulting
from the business combination?
Requirement: 
1. What is the amount of goodwill resulting from the business combination?
2.  Prepare the journal entries for the acquirer.
 
Upload your solutions and journal entries in good form.  You may upload a
picture of your handwritten solution, a screenshot of your digital work, or the
excel file of your work.

Consideration Transferred 620,000

Non-controlling Interest -

Previously Held equity Interest -

Total 620,000

Fair Value of net identifiable assets Acquired 470,000

Goodwill 150,000

    

Carrying amounts Fair Value

    Cash                                                                           60,000 60,000

        Inventory                                                                  180,000 150,000
        Properly and equipment (net of accumulated
depreciation of P220,000)                                      320,000 380,000
       Goodwill                                                                  100,000 100,000
       Liabilities                                                                    (120,000) (120,000)
       Net assets                                                                  540,0000 570,000

Consideration Transferred 620,000

Non-controlling Interest -

Previously Held equity Interest -

Total 620,000

Fair Value of net identifiable assets Acquired 470,000

Goodwill 150,000

JOURNAL ENTRIES:

Cash 60,000
Inventory 150,000
Property and Equipment 380,000
Goodwill 150,000
Liabilities Assumed 120,000
Share Capital 400,000
Share Premium 220,000