At this point we have allocated $60 million of the $100 million purchase price and we're stuck: Under accounting rules we cannot write up assets above their FMV, but we know that our balance sheet somehow has to reflect a $100 million book value (the purchase price). The accounting answer to this is goodwill. Mar 18, 2014 · It is quite easy to record the entries, because you already know where everything is placed, as you created your journal entries as you went through the month. This is extremely helpful. You may be wondering why you placed the balance in the debit column. Each account type has a normal balance depending on the category.

Summarize journal entries by general ledger account to identify repetitive and unique account sequences used in the journal entry (based on the first five debit and credit account postings). Summarize general ledger activity on the amount field (absolute value of debit or credit) to identify the top occurring amounts. MULTIPLE CHOICE QUESTIONS CHAPTERS 1 ... Balance Sheet As at December 31, 2010 ... Which of the following journal entries will be