SeyPROBLEM 2-3Condensed Statements of Financial Position of Love Corp. and You Corp.as of December 31, 2021 are as follows:Current assetsNoncurrent assetsLiabilitiesOrdinary shares, P20 parShare premiumRetained earningsLoveP175,000725,00065,000550,00035,000250,000YouP65,000425,00035,000300,00025,000130,000On January 1, 2022, Love Corp. issued 35,000 shares with a market valueof P25/share for the assets and liabilities of You Corp. CHAPTER 2: CONSOLIDATION - DATEOF ACQUISITIONthat the noncurrent assets of You have fair values of P630,000, and theThe book value reflects the fair value of the assets and liabilities exceptconsideration, which is determinable, is equal to P15,000. Love also paidnoncurrent assets of Love are overstated by P30,000. Contingentfor the stock issuance costs worth P34,000 and other acquisition costsamounting to P10,000.Required1. Consolidated assets as of date of acquisition.2. Consolidated equity as of date of acquisition.PROBLEM 2-4

Combining the assets, liabilities, and other financial components of two or more entities into one…

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 Love You P175,000 P65,000 725,000 425,000 65,000 35,000 550,000 300,000 35,000 25,000

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 Love You P175,000 P65,000 725,000 425,000 65,000 35,000 550,000 300,000 35,000 25,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 53E: Exercise 1-53 Relationships Among the Financial Statements During 2019, Moore Corporation paid...

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OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019. Required: 1. Prepare a single-step income statement for ERS for 2019. 2. CONCEPTUAL CONNECTION Compute net profit margin for ERS. If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? 3. CONCEPTUAL CONNECTION Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS future profitability?
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Problem 1-65B Relationships Among Financial Statements Leno Corporation reported the following amounts for assets and liabilities at the beginning and end of a recent year. Required: Calculate Lenos net income or net loss for the year in each of the following independent situations: Leno declared no dividends, and its common stock remained unchanged. Leno declared no dividends and issued additional common stock for $15,000 cash. Leno declared dividends totaling $10,000 and its common slack remained unchanged. Leno declared dividends totaling $12,000 and issued additional common stock for $20,000.
(Appendix 21.1) Comprehensive The following are Adair Companys December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance: A review of the accounting records reveals the following additional information for 2019: Investments in bonds to be held to maturity were purchased at year-end for 8,600. A building was purchased for 28,000. A note payable was issued for 9,000. Common stock was issued for 14,500. Dividends of 6,500 were declared and paid. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair. 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
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Problem 1-563 Applying the Fundamental Accounting Equation At the beginning of 2019, KJ Corporation had total assets of $525,100, total liabilities of $290,800. common stock of $100000. and retained earnings of $134,900. During 2019. KJ had net income of $205,500. paid dividends of $70,000. and 1ssued additional common stock for $36,000 KJs total assets at the end of 2019 were $10,100. Required: Calculate the amount of Liabilities that KJ must have at the end of 2019 in order for the balance sheet equation to balance.
2. The comparative balance sheet of Beta Communications Corporation Appears below: BETA COMMUNICATIONS CORPORATION Comparative Balance Sheets December 31 Assets 2022 2021 Current Assets $ 322 $ 280 Property, Plant, and Equipment 678 520 Total Assets $ 1,000 $ 800 Liabilities and Shareholders' equity Current Liabilities…
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Question 2:The following is the trial balance of Muti Tech Limited as at December 31, 2006.Paid-up share capital10,00,0005,00,000Share premiumNet income January 1, 200610% Debentures payable 20107,00,0006,00,000Piant and assets39,00,000Accumulated DepreciationMerchandise inventory4,60,0008,80,000Accounts receivableAccounts payable4,20,0003,60,000Purchases and sales36,50,00065,40,0005,00,00070,000Administrative salariesSales salariesDirectors remunerationAdvertising expensesCarriage outwardsUtility expenses1,60,0002,80,0001,00,0003,00,000Bank overdraft1,00,0001,02,60,000 1,02,60,000Additional Information:The paid-up share capital consists of 100,000 shares of Rs. 10 each.Merchandise inventory at December 31, 2006 was Rs. 500,000.Estimated tax on the profit of the company for the year is Rs. 1,50,000. The directorsa.b.have proposed final dividend of 10% on the ordinary share capital.d. Depreciation is provided at 10 percent per annum on plant and assets. Allowance forbad debts is to be…
#12 The summarized balance sheets of ROSE N' Company and GARDEN Company as of December 31, 2021, are as follows: ROSE N' CompanyBalance SheetDecember 31, 2021 Assets $2000000 Liabilities $220000 Capital stock 1000000 Retained earnings 780000 Total equities $2000000 GARDEN CompanyBalance SheetDecember 31, 2021 Assets $1480000 Liabilities $330000 Capital stock 990000 Retained earnings 160000 Total equities $1480000 If ROSE N' Company acquired a 30% interest in GARDEN Company on December 31, 2021 for $350000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (GARDEN) would have been $444000. $297000. $345000. $350000.
Problem 2 (Total assets) An entity was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in shares and borrowed funds of P1,100,000. During the first year of operations, revenue from sales and consulting amounted to P820,000, and operating costs and expenses totaled P640,000. On December 15, the entity declared a P30,000 cash dividend, payable to shareholders on January 15, 2020. No additional activities affected owners’ equity in 2019. The liabilities increased to P1,200,000 by December 31, 2019. What amount should be reported as total assets on December 31, 2019?
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