Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted.
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Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted.
| Green | Vega | ||||||
| Revenues | $ | 900,000 | $ | 500,000 | |||
| Cost of goods sold | 360,000 | 200,000 | |||||
| 140,000 | 40,000 | ||||||
| Other expenses | 100,000 | 60,000 | |||||
| Equity in Vega’s income | ? | ||||||
| 1,350,000 | 1,200,000 | ||||||
| Dividends | 195,000 | 80,000 | |||||
| Current assets | 300,000 | 1,380,000 | |||||
| Land | 450,000 | 180,000 | |||||
| Building (net) | 750,000 | 280,000 | |||||
| Equipment (net) | 300,000 | 500,000 | |||||
| Liabilities | 600,000 | 620,000 | |||||
| Common stock | 450,000 | 80,000 | |||||
| Additional paid-in capital | 75,000 | 320,000 | |||||
Green acquired 100% of Vega on January 1, 2019, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2019, Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no
Compute the December 31, 2023, consolidated total expenses.
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- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Following are selected accounts for Green Corporation and Vega Company as of December 31, 2023. Several of Green's accounts have been omitted. Green Vega Revenues $ 900,000 $ 500,000 Cost of goods sold 360,000 200,000 Depreciation expense 140,000 40,000 Other expenses 100,000 60,000 Equity in Vega’s income ? Retained earnings, 1/1/2023 1,350,000 1,200,000 Dividends 195,000 80,000 Current assets 300,000 1,380,000 Land 450,000 180,000 Building (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liabilities 600,000 620,000 Common stock 450,000 80,000 Additional paid-in capital 75,000 320,000 Green acquired 100% of Vega on January 1, 2019, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2019, Vega's land was undervalued by $40,000, its buildings…
- The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Stanza Revenues $ (708,000 ) $ (632,000 ) Cost of goods sold 252,800 158,000 Depreciation expense 159,000 210,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/21 (758,000 ) (206,000 ) Current assets 400,000 536,000 Copyrights 1,060,000 419,000 Royalty agreements 690,000 1,112,000 Investment in Stanza Not given 0 Liabilities (690,000 ) (1,377,000 ) Common stock (600,000 ) ($20 par) (200,000 ) ($10 par)Additional paid-in capital (150,000 ) (80,000 ) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza’s outstanding stock for $757,000 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 $510,000 book value but a fair value of $654,000. As of December 31, 2021, what is the…The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Stanza Revenues $ (816,000 ) $ (724,000 ) Cost of goods sold 290,600 181,000 Depreciation expense 163,000 368,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/21 (700,000 ) (216,000 ) Current assets 460,000 550,000 Copyrights 950,000 447,000 Royalty agreements 662,000 1,122,000 Investment in Stanza Not given 0 Liabilities (554,000 ) (1,508,000 ) Common stock (600,000 ) ($20 par) (200,000 ) ($10 par) Additional paid-in capital (150,000 ) (80,000 ) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza’s outstanding stock for $790,000 fair value in cash and common stock. Penske also paid…The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Stanza Revenues $ (816,000 ) $ (724,000 ) Cost of goods sold 290,600 181,000 Depreciation expense 163,000 368,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/21 (700,000 ) (216,000 ) Current assets 460,000 550,000 Copyrights 950,000 447,000 Royalty agreements 662,000 1,122,000 Investment in Stanza Not given 0 Liabilities (554,000 ) (1,508,000 ) Common stock (600,000 ) ($20 par) (200,000 ) ($10 par) Additional paid-in capital (150,000 ) (80,000 ) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza’s outstanding stock for $790,000 fair value in cash and common stock. Penske also paid…
- ABC Corporation's accounting records include the following items, listed in no particular order, at December 31, 2024: Other Income and (Expenses) $7,200 Cost of Goods Sold $30,000 Net Sales $81,000 Operating Expenses $25,000 Gain on Discontinued Operations $3,600 The income tax rate for ABC Corporation is 21%. Prepare ABC's income statement for the year ended December 31, 2024. Omit earnings per share. Prepare the income statement through the income before taxes, then complete the income statement through the net income. ABC Corporation Income Statement Year Ended December 31, 2024 Costs of Goods Sold $___________ Discontinued Operations (less applicable tax) $___________ Income Tax Expense $___________ Operating Expenses $___________ Other Income and (Expenses) $___________ Net Sales $___________ Income Before Income Taxes $___________The information on the following page was obtained from the records of Breanna Incorporated: $ 10, 200 50,800 128,000 9,500 64,500 Accounts receivable Accumulated depreciation Cost of goods sold Income tax expense Cash Net sales Equipment Selling, general, and administrative expenses Common stock (8,200 shares) Accounts payable Retained earnings, 1/1/22 Interest expense Merchandise inventory Long-term debt Dividends declared and paid during 2022 Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2022, and that all income statement items reflect activities that occurred during the year ended December 31, 2022. There were no changes in paid-in capital during the year. Required: a. Prepare an income statement and statement of changes in stockholders' equity for the year ended December 31, 2022, and a balance sheet at December 31, 2022, for Breanna Incorporated. Based on the financial statements that you have prepared for part a,…Selected information follows for Sheridan Corporation for 2023: Accounts payable $60,300 Cash 240,000 Cost of goods sold 580, 000 Income tax expense 31, 400 Interest expense 3,500 Retained earnings 377,000 Sales revenue 757, 500 Selling expenses 61,800 Calculate Sheridan's net income for 2023. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net income Senter the net income in dollars 79800 Incorrect answer eTextbook and Media
- The general ledger trial balance of Cullen Corporation includes the following accounts at Dec. 31, 2021: Sales revenue P1,200,000 Interest income 24,000 Proceeds on sale of fixed assets 50,000 Written-down value of assets sold 45,000 Valuation gain on trading investments 20,000 Dividends received 5,000 Cost of sales 840,000 Finance expenses 18,000 Selling and distribution expenses 76,000 Administrative expenses 35,000 Income tax expense 85,000 How much should be reported as profit for the year. ended Dec. 31, 2021? a. P285,000 b. P200,000 c. P195,000 d. P150,000The records containing several transactions incurred by Forbes Corporation at December 31, 2021 showed the following balances: Bad debts expense 2,750,000Freight out 4,000,000Cost of sales 46,350,000Loss on sale of equipment 2,000,000Loss on early retirement of long-term debt 3,000,000Sales 97,500,000Interest income 4,850,000Administrative expenses 11,250,000Finished goods inventory, January 1 60,000,000Sales commissions 6,000,000Finished goods inventory, December 31 55,000,000Income tax rate 30% What amount shall Forbes Corporation shall report as its net income for the year 2021?The following information is related to Nash Company for 2025. Retained earnings balance, January 1, 2025 Sales revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2025 Gain on the sale of investments Loss due to flood damage. Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock (a1) $901,600 23,000,000 14,720,000 Nash Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Nash sold the wholesale operations to Rogers. Company. During 2025, there were 500,000 shares of common stock outstanding all year. + 64,400 4,324,000 754,400 1,144,480 101,200 358,800 404,800 82,800 230,000 73,600 Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g.…
