1. award: 0 out of 0.00 points Willkom Corporation bought 100 percent of Szabo, Inc., on January 1, 2011. On that date, Willkom’s equipment (10-year life) has a book value of $472,500 but a fair value of $629,500. Szabo has equipment (10-year life) with a book value of $283,000 but a fair value of $440,000. Willkom uses the equity method to record its investment in Szabo. On December 31, 2013, Willkom has equipment with a book value of $330,750 but a fair value of $530,250. Szabo has equipment with a book value of $198,100 but a fair value of $409,100. What is the consolidated balance for the Equipment account as of December 31, 2013? rev: 10_01_2012 $685,850. $528,850. $939,350. → $638,750. Willkom’s equipment book …show more content…
Consolidated retained earnings (initial value method) $ Consolidated retained earnings (partial equity method) $ Under each of the following situations, what is the Investment in Rambis account balance on Herbert’s books on January 1, 2013? b-1. The parent uses the equity method. Investment $ b-2. The parent uses the partial equity method. Investment $ b-3. The parent uses the initial value method. Investment $ Under each of the following situations, what is Entry *C on a 2013 consolidation worksheet? (Leave no cells blank. If no entry is required, select "No Journal Entry Required" in the account field and zero (0) in the amount field.) c-1. The parent uses the equity method. Date General Journal Debit Credit January 1, 2013 No Journal Entry Required No Journal Entry Required c-2. The parent uses the partial equity method. Date General Journal Debit Credit January 1, 2013 Retained Earnings, 1/1/13 Investment in Rambis c-3. The parent uses the initial value method. Date General Journal Debit Credit January 1, 2013 Investment in Rambis Retained Earnings, 1/1/13 rev: 02_07_2013_QC_26416 Explanation: a. Consolidated retained earnings—equity method Herbert (parent)
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13. Use the following data to determine the total dollar amount of assets to be classified as property, plant, and equipment. Eddy Auto Supplies Balance Sheet December 31, 2014 Cash $84,000 Accounts payable $110,000 Accounts receivable $80,000 Salaries and wages payable $20,000 Inventory $140,000 Mortgage payable $180,000 Prepaid insurance $60,000 Total liabilities $310,000 Stock investments $170,000 Land $190,000 Buildings $226,000 Common stock $240,000 Less: Accumulated Retained earnings $500,000 depreciation ($40,000) $186,000 Total
Gross profit ratio had been declining through the period of 2008-2010, which indicates decrease of markup that the company achieved on its inventory, which also means that it lowered sales prices compared to costs.
Q6. XYZ Ltd is a publicly listed company which has suffered from major sales declines, due to increased foreign completion, and has made a succession of losses over the past three years. During the year, its CEO resigned and was replaced by Chief Operating Officer (COO). The trial balance reveals that sales were $10,000,000 and the company made a loss of $500,000. At what level
Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this information, Warren would recognize which of the following amounts of expense on the income
As part of the expansion plan, Wie will acquire some used equipment by signing a zero-interest-bearing note. The note has a maturity value of $50,000 and matures in 5 years. A reliable fair value measure for the equipment is not available, given the age and specialty nature of the equipment. As a result, Wie 's accounting staff is unable to
Shakespeare’s management uses $10 m from the modified line of credit to acquire Hamlet, a competitor publishing company. Management’s best estimate of the allocation of the $10 million purchase is as follows: $2 million of current assets and $8 million noncurrent assets (comprising $5 million of identifiable noncurrent assets, $2 million of intangible assets, and $1 million of goodwill). Hamlet’s prior-year
Activity-based costing (ABC) methodology is an instrument designed to provide accountants and managers with valuable costing information that will allow them to make sound strategic decisions. It is used as a secondary methodology rather than a replacement for the company’s primarily costing system. The ABC methodology identifies activities in an organization and for each activity it assigns a cost. The cost reflects the actual resource consumption by each activity that has been identified.
The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company’s first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to
(Note: retained earnings information is irrelevant here) Part b. Total market value = debt + pref. equity + Common equity = 1,147,200 + 1,250,000 + 2,500,000 = $4,897,200
10. Based on a cost of equity of 5.31%, Under Armour created value in 2013 because the ROE (17.4%) is greater than the cost of equity (5.31%).
Ron Barber, CPA, is auditing the financial statements of DGF, Inc., a publicly held company. During the course of the audit, Barber discovered that DGF has been making illegal bribes to foreign government officials to obtain business, and he reported the matter to senior management and the board of directors of DGF.
| SpannerWorks receives a tax refund in respect of the 2010 income year. Refund per the return for the year ended 31 March 2010 was $3,600 (net of any UOMI).
2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?