CA answer Ch1

5 WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition:   Assets   Liabilities and Equity Accounts Receivable 79,000   Current Liabilities 145,000 Inventory 112,000   Long-term notes 100,000 Other current assets 55,000   Ordinary share, P1 par 50,000 Equipment (net) 294,000   Share premium 200,000 Goodwill 30,000   Retained earnings 75,000 Total assets 570,000   Total liabilities and equity 570,000   On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018.   The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled…

*Inventories is 110,000 a. 240,000b. 870,000c. 300,000d. 480.000

A corporation is studying the possibility of acquiring Entity E whose statement of financial position had the following balances at the date of valuation: Current assets 450,000 Investments 150,000 PPE-net 1,200,000 Accounts payable 130,000 Accrued liabilities 110,000 Bonds payable 300,000 Share capital 150,000 Share premium 510,000 Retained earnings 600,000 According to an appraisal report requested by the company, the investments had a fair value of P450,000 and the inventory was understated by P240,000. All other assets and equities are properly stated. An examination of Entity E's income for the last 4 years indicates that the net income has steadily increased by 20%. Entity E had a net operating income of P300,000 in the year of valuation. The valuation expert believes that a normal rate of return for a business of this type is 16%. Assets are expected to stay the same for the next 4 years. Determine the estimated value of Entity E assuming goodwill is computed through…

8 WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition:   Assets   Liabilities and Equity Accounts Receivable 79,000   Current Liabilities 145,000 Inventory 112,000   Long-term notes 100,000 Other current assets 55,000   Ordinary share, P1 par 50,000 Equipment (net) 294,000   Share premium 200,000 Goodwill 30,000   Retained earnings 75,000 Total assets 570,000   Total liabilities and equity 570,000   On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018.   The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their…

CARAT CORP. has completed its current year financial statements which reveal, in part, the following information: *Profit for the year - P110,000 *Total Comprehensive Income - P130,000 *Other comprehensive income relates to the revaluation of land and buildings to fair value *Dividends paid - P35,000 *Opening equity balances - share capital P300,000, retained earnings P220,000, asset revalution surplus P60,000 *No more share capital was issued during the reporting period The total equity at the end of the current year is: Choices a. 695,000 b. 675,000 c. 655,000 d. 580,000

5. PSA Inc. prepared a draft of its 2021 Statement of Financial Position. The draft statement reported total assets of P4.375,000. The total assets included the following items.             Treasury shares of PSA Inc. at cost, which approximates market value                         on December 31                                                         P120,000             Unamortized patent                                                                    56,000             Cash surrender value of life insurance                                       68,500             Cumulative translation loss                                                         42,000 At what amount should total assets be correctly reported in the December 31,2010 Statement of Financial Position?

What amount of total assets will be reported?

​On April 1, 20x8 Phar acquired 90% of the Equity Shares of Star. Star retained profits at the date of acquisition were $ 2, 640,000.     Balance Sheet as at 31 March 20x9.       Phar   Star     $000 $000 $000 $000 Non-Current Assets         PPE 2,544   2,388   Intangible Software -   2,520   Investments-Equity in Star 5, 036   -   Others 214   252       7,794   5,160 Current Assets         Inventories 863   672   Receivables 629   394   Stars Current Account   90     -   Cash 24   -       1,606   1,066     9,400   6,226 Capital and Reserves         Equity shares of $1 each   2,400   1,800 Share Premium 2,400…

Show the complete solution. Thank you The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets P195,000 Land 1,320,000 Building 660,000 Equipment 525,000 Total Assets P2,700,000     Liabilities P525,000 Ordinary Shares, P5 par 900,00 Share Premium 825,000 Retained Earnings 450,000 Total Equities P2,700,000 All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value. Required Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase…

D1. Account

Use the following information for questions 1 to 4: On December 31, 2014, Add-On Company acquired 100 percent of Venus Corporation's common stock for P300,000. Balance sheet information Venus just prior to the acquisition is given here: Cash and receivables. P 35,000 Inventory.. Land.. 75,000 100,000 Buildings and equipment (net).. 220.000 Total assets. 420,000 Liabilities and Stockholder's Equity Accounts payable. Bonds payable. Common stock (P1 par). P 65,000 150,000 100,000 Retained earnings.. 115,000 Total liabilities and equity.. 430,000 At the date of the business combination. Venus's net assets and liabilities approximated fair value except for inventory, which had a fair value of P60,000, land which had a fair value of P125,000, and buildings and equipment (net), which had a fair value of P250,000. 1. What amount of inventory will be included in the consolidated balance sheet immediately following the acquisition? а. Р15,000 C. P60,000 b. P45,000 2. What amount of goodwill will…

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What will be the balance in the investment account on December 31, 20y4 under the equity method of accounting? A. 152,000 B. 150,000 C. 159,200 D. 155,600

What amount of investment income will Pinta record during 20y4 under the equity method of accounting?   A. 12,800 B. 9,200 C. 15,600 D. 3,600

I can find the values for the equity and investment asset credits/debits

The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (742,000) 264,700 187,000 Not given. 80,000 (788,000) 498,000 990,000 Investment in Stanza Liabilities Common stock Additional paid-in capital 772,000 Not given (600,000) (600,000) ($20 par) (150,000) Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 0 (1,357,088) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock Issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $456,000 book value but a fair value of $660,000. Required: a. As of December 31, 2024, what is…

Asset versus stock acquisition. Barstow Company is contemplating the acquisition of the net assets of Crown Company for $875,000 cash. To complete thetransaction, acquisition costs are $15,000. The balance sheet of Crown Company on the purchase date is as follows:Crown CompanyBalance SheetDecember 31, 2015Assets Liabilities and EquityCurrent assets . . . . . . . . . . . . . . . . . . . . . $ 80,000 Liabilities . . . . . . . . . . . . . . . . $100,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Common stock ($10 par). . . . 100,000Building . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000 Paid-in capital in excess of par 150,000Accumulated depreciation—building . . . (200,000) Retained earnings . . . . . . . . . 250,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . 300,000Accumulated depreciation—equipment . (100,000)Total assets. . . . . . . . . . . . . . . . . . . . . . $ 600,000 Total liabilities and equity . $600,000The following fair…

Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet:   Assets     Accounts receivable   $  60,000 Inventory   100,000 Equipment $  90,000   Accumulated depreciation   (50,000) 40,000       Land and buildings $300,000   Accumulated depreciation (100,000) 200,000 Goodwill       60,000      Total assets   $460,000       Liabilities and Stockholders' Equity     Bonds payable   $  80,000 Common stock, $10 par   200,000 Paid-in capital in excess of par   100,000 Retained earnings       80,000      Total liabilities and equity   $460,000   Mans has secured the following fair values of Eagle's accounts:   Inventory $130,000 Equipment 60,000 Land and buildings 260,000 Bonds payable 60,000   Acquisition costs were $20,000.   Required:   Record the entry for the purchase of…

Mans Company is about to purchase the net assets of Eagle Incorporated, which has the following balance sheet:   Assets     Accounts receivable   $  60,000 Inventory   100,000 Equipment $  90,000   Accumulated depreciation   (50,000) 40,000       Land and buildings $300,000   Accumulated depreciation (100,000) 200,000 Goodwill       60,000      Total assets   $460,000       Liabilities and Stockholders' Equity     Bonds payable   $  80,000 Common stock, $10 par   200,000 Paid-in capital in excess of par   100,000 Retained earnings       80,000      Total liabilities and equity   $460,000   Mans has secured the following fair values of Eagle's accounts:   Inventory $130,000 Equipment 60,000 Land and buildings 260,000 Bonds payable 60,000   Acquisition costs were $20,000.   Required:   Record the entry for the purchase of…

During your audit of Asumbra Company for the year 2004, its initial year of operations, youfind the following entries in its “Shareholders’ Equity” account: (see image below) Compute for the book value per share of the company’s share as of December 31, 2004

Do not give answer in image

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E5-5 Balance Sheet Worksheet Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Cash & Receivables Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Problem Company $ 130,000 210,000 70,000 390,000 Solution Dairy $ 70,000 90,000 40,000 220,000 270,000 Total Assets $1,070,000 $420,000 Current Payables Long-Term Liabilities Common Stock $ 80,000 $ 40,000 200,000 100,000 400,000 60,000 Retained Earnings 390,000 220,000 Total Liabilities & Stockholders' Equity $1,070,000 $420,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $8,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Required Prepare and complete a…

The chief accountant of Corchester had prepared the following balances at 1July 1994: Freehold property $ 100000 Other fixed asset 480 000 Current asset (including bank) 440 000 Less current liabilities (200 000) Financed by: Issued and paid up share capital: 400 000 ordinary shares of $1 each 400 000 150 000 8% redeemable preference shares of $1 each 150 000 Reserves: Capital redemption reserve 100 000 Share premium account 50 000 General Reserves 45 000 Profit and loss account 75 000 The directors had decided to carry out the following transactions on August 1994: 8 July 1994 , A rights issue of one ordinary share for 4 already held. All shareholders took up their rights. 1 August 1994, A bonus issue was made of one ordinary share for 10 held based on the revised ordinary share capital This was carried with equal amounts from the revenue…

Requirements:   Based on the above and the result of your audit, determine the following: 1. Total income from investments in equity securities 2. Rent income for 2020 3. Royalty income for 2020

What amount of stockholder's equity will be reported?

I need help with this pl

PayNet Inc. (PayNet) and Shale Ltd. (Shale) had the following balance sheets on July 31, 2022:

At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000.  Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000

9. RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets of SP Company, as recorded on SP Company's books at the time of the acquisition, is as follows: Assets Cash Receivable Inventory Land, buildings, and equipment (net) Total assets Liabilities Current liabilities Long-term debt P31,000 250,000 302,000 350,000 P933,000 Inventory Land, building and equipment Patent P90,000 185,000 P275,000 P658,000 Total liabilities Net assets (book value) The following schedule shows the differences between the recorded costs and market values of the assets of SP Company at the date of the acquisition: Cost P302,000 350,000 0 Purchased in-process research and development Existing workforce Totals P652,000 P275,000 Liabilities Determine the amount of goodwill to be recognized on the acquisition? a. P642,000 c. P74,000 b. P464,000 d. P164,000 0 0 Market P400,000 390,000 40,000 300,000 90,000 P1,220,000 P275,000

5. The following information are related to Bacon Corporation: Sales Asset Turnover Php 15,000,000 3.0x Debt to Equity Ratio Weighted average outstanding shares 1.5 200,000 shares Asset turnover only considered asset balance as of December 31. How much is the book value per share of Bacon Corporation based on the foregoing information. a) Php75.00 b) Php25.00 c) Php15.00 d) Php10.00

2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets Land P195,000 1,320,000 660,000 525,000 Building Equipment Total Assets P2,700,000 Liabilities Ordinary Shares, P5 par Share Premium Retained Earnings Total Equities P525,000 900,00 825,000 450,000 P2,700,000 All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur's outstanding shares for P3,000,000. The non-controlling interest is measured at fair value. Required: a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. b. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling…

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Redcliff Ltd acquired the entire share capital of ABC Ltd for $18,000 cash on 31 December 20X4.The balance sheets of the two companies as at that date were as follows:          Redcliff Ltd                                                                             ABC Ltd$ $ $Current assets 240,000                                                        28,800Non-current assets:Investment in ABC at cost 18,000Other asset 96,000 114,000 9,600Total assets 354,000 38,400Current liabilities 198,000 20,400Net assets 156,000 18,000Paid-up capital 120,000 12,000Retained profits 36,000 6,000Owners’ equity 156,000 18,000Required:Prepare the consolidated balance sheet of Redcliff Ltd and its subsidiary as it 31 december 20X4.

D1.