Focus Financial Partners Inc Transaction Details Merger Acquisition

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Review of pre-consolidation equity method (controlling investment in affiliate, fair value differs from book value) Assume an investee has the following financial statement information for the three years ending December 31, 2019: (At December 31) 2019 2018 2017 Current assets $285,000 $277,500 $207,000 Tangible fixed assets 662,500 575,000 563,000 Intangible assets 40,000 45,000 50,000 Total assets $987,500 $897,500 $820,000 Current liabilities $120,000 $110,000 $100,000 Noncurrent liabilities 266,250 242,500 220,000 Common stock 100,000 100,000 100,000 Additional paid-in capital 100,000 100,000 100,000 Retained earnings 400,000 345,000 300,000 Stockholders' equity 600,000 545,000 500,000 Total liabilities and equity $986,250 $897,500 $820,000   (For the years ended December 31) 2019 2018 2017 Revenues $970,000 $920,000 $850,000 Expenses 875,000 840,000 775,000 Net income $95,000 $80,000 $75,000 Dividends $40,000 $35,000 $25,000…

Problem 15-5 (IAA) Prepare journal entry to record the sale`of ABC ordinary statement of financial position on January 1, 2020: Aborigine Company reported the following accounts in the share on July 1, 2021. Market adjustment for unrealized loss the change in fair value. 3. Prepare journal entry on December 31, 2021 to recognize A tement of hnancial position on January 1, 2020: Noncurrent assets Financial asset –FVOCI Market adjustment for unrealized loss 4,000,000 ( 500,000) Market value 3,500,000 Other comprehensive income Unrealized loss ( 500,000) An analysis of the investment portfolio revealed the following on December 31, 2020. Cost Market XYZ ordinary share ABC ordinary share RST preference share 1,000,000 2,500,000 500,000 1,200,000 2,000,000 200,000 4,000,000 3,400,000 On July 1, 2021, the ABC ordinary share was sold for P2,100,000. On December 31, 2021, the remaining investments have the following market value: XYZ ordinary share RST preference share 1,000,000 150,000…

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Acquisition Entries, Acquisition Costs, Bargain Gain Plastic Corporation is contemplating a business combination with Steel Corporation at December 31, 2021. Steel's condensed balance sheet on that date appears below: Assets Cash and receivables Inventory Equity method investments Land Buildings and equipment Patents Total assets Liabilities and Stockholders' Equity Liabilities Common stock Retained earnings Total liabilities and equity Cash and receivables Inventory Equity method investments Land Description Buildings and equipment Patents Goodwill Liabilities Required Prepare the journal entry to record the business combination of Plastic and Steel for each of the following acquisition costs and combination methods. (a) Plastic acquires Steel as a merger for $250,000 cash. Other direct cash acquisition costs are $20,000. General Journal Description Cash and receivables Inventory Equity method investments. Land Liabilities Cash Buildings and equipment Patents ÷ Description (b) Plastic…

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PROBLEM 5 - 5 (PFRS for SMES) Shadow Company acquired the net assets of Recruit Company on July 1, 2019, and made the following entry to record the acquisition (both using PFRS for SME): Current and Non-current assets Goodwill 3,600,000 600,000 Liabilities Ordinary share capital, P1 par Share Premium 480,000 600,000 3,120,000 The agreement further provides that additional cash consideration would be paid on June 30, 2020, equal to twice the amount by which net eamings of Recruit Company exceed P300,000 with the first 12 months of acquisition. Net income was P260,000 in 2019 (earned evenly) and P160,000 for the first six months of 2020. Included in the goodwill computation and liabilities above is the fair value of the contingent consideration, which was estimated to be P80,000 as of July 1, 2019, although assessed as not probable at this date. What should be the amount of Goodwill on December 31, 2020?

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Computing the amount of equity income and preparing [I] consolidation journal entries Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2012 and 2013: Subsidiary Intercompany Net Inventory Sales Income 2013 $500,000 2012 $400,000 $75,000 $50,000 Description [cogs] Investment in subsidiary Cost of goods sold [sales] Sales Gross Profit % Assume that inventory not remaining at the end of the year was sold outside of the consolidated group during the year. Assume the parent company uses the full equity method to account for its subsidiary. Cost of goods sold [lcogs] Cost of goods sold Inventory [pay] Accounts payable 30% a. How much Equity Income should the parent report in its pre-consolidation income statement the year ending 2013 assuming that it uses the equity method of accounting for its Equity…

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Prepare journal entries on December 31, 2020 and December Problem 15-4 (IAA) Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,000 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: 31, 2021. 426

Question 1 Explain the purpose of the pre-acquisition entries in the preparation of consolidated financial statements. Question 2 When there is a dividend payable by the subsidiary at acquisition date, under what conditions should the existence of this dividend be taken into consideration in preparing the pre-acquisition entries? Question 3: Prepare acquisition analysis and Consolidation worksheet entries Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2020. At this date the financial position of Matt Ltd was as follows: Carrying Fair Value Amount $300 000 (60 000) 25 200 Plant 270 000 Accumulated Depreciation Account Receivables 25 200 Cash 15 000 15 000 15 600 295 800 Inventories 19 600 Share Capital 220 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits Dividend Payable 19 200 19 200 9 000 295 800 9 000 Additional information: The assets of Mel Ltd did not include a patent that was valued by Syd Ltd at $12 000. Its useful life…

Preparing the consolidation entries for sale of land Assume that during 2015 a wholly owned subsidiary sells land that originally cost $450,000 to its parent for a sale price of $500,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping a. Prepare the required [] consolidation entry in 2015. Description gain Gain on a Cash b. Prepare the required [] consolidation entry required at the end of each year 2016 through 2018 Description Debit Credit gain Retained earnings Land gain Equityment Gain on sa Debit x 50,000 ✓ L c. Assume that the parent re-sells the land outside of the consolidated group for $525,000 on December 31, 2019. Prepare the journal entry made by the parent to record the sale and the required 3 consolidation entry for 2019. Description Credit 50,000 Debi 525,000 0✔ 0✔ Credit 25,000 0✔ 50,000 Dx DU 25,000x d. What will be the amount of gain reported in the…

Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal year

The following are selected accounts and balances for Jonah Company and Hill, Incorporated, as of December 31, 2024. Several of Jonah's accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Accounts Revenues Cost of goods sold Depreciation expense Investment income Retained earnings, 1/1/24 Dividends declared Current assets Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Jonah $ (580,000) 276,000 104,000 Not given Hill $ (244,000) 98,000 52,000 0 (888,000) (604,000) 136,000 46,000 208,000 686,000 316,000 92,000 482,000 122,000 218,000 250,000 (384,000) (302,000) (284,000) (40,000) (50,000) (908,000) Assume that Jonah acquired Hill on January 1, 2020, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2020, Hill's land was undervalued by $19,800, its buildings were overvalued by $30,800, and equipment was…

E5.4 Consolidation at date control, fair value adjustment in subsidiary financial statements, NCI allocation using memorandum account with proportionate interest goodwill method (Sections 5.3 and 5.4.3) On 1 July 20X9 Pear Ltd gained control of Pea Ltd by purchasing 75% of that entity's issued voting shares for a consideration of $1.2million. This consideration comprised cash of $400 000 and 400 000 fully paid ordinary shares at an agreed market value of $2 each. The directors of Pear Ltd determined that at the date control was obtained, a parcel of land included in the Accounting for Corporate Combinations and Associations right Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2017-9781488611520 – Arthur/Accounting for Corporate Combinations and Associat non-current assets of Pea Ltd was recorded at $200000 below its fair value. The directors of Pear Ltd have decided that the revaluation of this parcel of land should be recognised in the accounting records of Pea Ltd.…

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Accounting Company A acquires Company B on May 1, 2016. Please prepare the journal entry to record Consideration Transferred. Total assets acquired 28,783 Total liabilities assumed 9,978 Net assets acquired 18,805 Non-controlling interest (155) Total net consideration transferred 18,650 Common Stock Other capital Shares issued for merger 104 19,696

Cost method consolidation entries (controlling investment in affiliate, fair value differs from book value) Assume an investee has the following financial statement information for the three years ending December 31, 2019: (At December 31) 2019 2018 2017 Current assets $285,000 $277,500 $207,000 Tangible fixed assets 662,500 575,000 563,000 Intangible assets 40,000 45,000 50,000 Total assets $987,500 $897,500 $820,000 Current liabilities $120,000 $110,000 $850,000 Noncurrent liabilities 266,250 242,500 220,000 Common stock 100,000 100,000 100,000 Additional paid-in capital 100,000 100,000 100,000 Retained earnings 400,000 345,000 300,000 Stockholders' equity 600,000 545,000 500,000 Total liabilities and equity $986,250 $897,500 $820,000 (For the years ended December 31) 2019 2018 2017 Revenues $970,000 $920,000 $850,000 Expenses 875,000 840,000 775,000 Net income $95,000 $80,000 $75,000 Dividends $40,000 $35,000 $25,000 Assume on January 1, 2017, an investor company purchased 100%…

Review of pre-consolidation cost method (controlling investment in affiliate, fair value equals book value) Assume an investee has the following financial statement information for the three years ending December 31, 2019: (At December 31) 2019 2018 2017 Current assets $285,000 $277,500 $207,000 Tangible fixed assets 662,500 575,000 563,000 Intangible assets 40,000 45,000 50,000 Total assets $987,500 $897,500 $820,000 Current liabilities $120,000 $110,000 $100,000 Noncurrent liabilities 266,250 242,500 220,000 Common stock 100,000 100,000 100,000 Additional paid-in capital 100,000 100,000 100,000 Retained earnings 400,000 345,000 300,000 Stockholders' equity 600,000 545,000 500,000 Total liabilities and equity $986,250 $897,500 $820,000   (For the years ended December 31) 2019 2018 2017 Revenues $970,000 $920,000 $850,000 Expenses 875,000 840,000 775,000 Net income $95,000 $80,000 $75,000 Dividends $40,000 $35,000 $25,000   Assume that…

Consolidated Worksheet Preparation You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate the effect of different methods of accounting for the investments (equity, initial value, and partial equity) on the parent company’s trial balance and on the consolidated worksheet subsequent to acquisition. The second objective is to show the effect on consolidated balances and key financial ratios of recognizing a goodwill impairment loss. Project Scenario Pecos Company acquired 100 percent of Suaro’s outstanding stock for $1,450,000 cash on January 1, 2017, when Suaro had the following balance sheet:(THIS IS IN THE PICTURE)   Following is the consolidated information worksheet. December 31, 2018, trial balances                 Pecos Suaro   revenues  $      (1,052,000)  $      (427,000)   operating expenses  $          821,000  $       262,000   goodwill impairment loss ?     income of Suaro ?     net income ?  $…

P1-2 Prepare balance sheet after an acquisition On January 2, 2016, Pop Corporation enters into a business combination with Son Corporation in which Son is dissolved. Pop pays $1,650,000 for Son, the consideration consisting of 66,000 shares of Pop $10 par common stock with a market value of $25 per share. In addition, Pop pays the following expenses in cash at the time of the merger: Finder's fee Accounting and legal fees Registration and issuance costs of securities Balance sheet and fair value information for the two companies on December 31, 2015, immediately before the merger, is as follows (in thousands): Cash Accounts receivable-net Inventories Land Buildings-net Equipment-net Total assets Accounts payable Note payable Capital stock, $10 par Other paid-in capital Retained earnings Total liabilities and owners' equity Pop Book Value $300 460 1,040 800 2,000 1,000 $5,600 $ 600 1,200 1,600 1,200 1,000 $5,600 $70,000 130,000 80,000 $280,000 Son Book Value Son Fair Value $ 60 $60 100…

Prepare consolidation worksheet entries for December 31, 2021   -Prepare entry S to eliminate stockholders' equity accounts of subsidiary for 2021. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021. Prepare entry I to eliminate the income accrual for 2021 less the amortization recorded by the parent using the equity method. Prepare entry D to eliminate intra-entity dividend transfers. Prepare entry E to recognize current year amortization expense.

Question 6: Intra-group transaction Question (worksheet adjustment entries for the following independent transactions)   Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%.   (a)    SYD Ltd sold inventory to MEL Ltd on 1 September 2018 for $30 000. This inventory had cost SYD Ltd $18 000. One-third of the inventory was sold by Mel Ltd to QLD Ltd for $14 000 and one-third to ADL Ltd for $14 200. (b)    SYD Ltd manufactures certain items which it then markets through MEL Ltd. During the current period, SYD Ltd sold items for $20 000 to MEL Ltd at cost plus 20%. MEL Ltd has sold 75% of these transferred items at 30 June 2019. (c)    During June 2019, MEL Ltd declared a $3000 dividend. The dividend was paid in August 2020. (d)…

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Intra-group transaction Question (worksheet adjustment entries for the following independent transactions)   Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%.   (b) SYD Ltd manufactures certain items which it then markets through MEL Ltd. During the current period, SYD Ltd sold items for $20 000 to MEL Ltd at cost plus 20%. MEL Ltd has sold 75% of these transferred items at 30 June 2019.

An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000.   On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000.   If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020?  Group of answer choices P40,000 Nil P420,000 P160,000

An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020?  Group of answer choices A) P420,000 B) P160,000 C) Nil D) P40,000

Sey PROBLEM 2-3 Condensed Statements of Financial Position of Love Corp. and You Corp. as of December 31, 2021 are as follows: Current assets Noncurrent assets Liabilities Ordinary shares, P20 par Share premium Retained earnings Love P175,000 725,000 65,000 550,000 35,000 250,000 You P65,000 425,000 35,000 300,000 25,000 130,000 On January 1, 2022, Love Corp. issued 35,000 shares with a market value of P25/share for the assets and liabilities of You Corp.