Home Office P 256,000 210,000 Branch Sales P 78,500 Purchases from outsiders 20,000 Shipments to branch: Cost to home office 30,000 Billing price to branch Expenses Inventories, January 1, 2021: Home office acquired from outsiders, at cost Branch: 40,000 60,000 12.500 80,000 Acquired from outsiders, at cost Acquired from home office, at billed price (which averaged 22 ½ above cost) 7.500 24,500 Inventories, December 31, 2021: Home Office, acquired from outsiders, at cost Branch: 55,000 Acquired from outsiders, at cost Acquired from home office, at 2021 billed price 5,500 26,000

Home Office P 256,000 210,000 Branch Sales P 78,500 Purchases from outsiders 20,000 Shipments to branch: Cost to home office 30,000 Billing price to branch Expenses Inventories, January 1, 2021: Home office acquired from outsiders, at cost Branch: 40,000 60,000 12.500 80,000 Acquired from outsiders, at cost Acquired from home office, at billed price (which averaged 22 ½ above cost) 7.500 24,500 Inventories, December 31, 2021: Home Office, acquired from outsiders, at cost Branch: 55,000 Acquired from outsiders, at cost Acquired from home office, at 2021 billed price 5,500 26,000

Name: ABC Company operates a branch. Operating data for the home office and
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: ABC Company operates a branch. Operating data for the home office and the branch for 2021 are as follows: (see image below)Determine the Branch December 31, 2021 Inventory at cost? Home OfficeBranchP 256,000SalesPurchases from outsidersP 78,500210,00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 64E

See similar textbooks

Similar questions

Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1. Acquired a more advanced machine worth 10,000 by paying 2,000 cash and giving up a machine that had originally cost 40,000 and has a book value of 12,000, 2. Acquired a building worth 55,000 by paying 5,000 cash and giving up a piece of land that had originally cost 35,000. 3. Acquired a more advanced machine worth 20,000 by paying 5,000 cash and giving up a machine that had originally cost 13,000 and has a book value of 11,000. 4. Acquired a car by giving up a truck that had originally cost 20,000, has a book value of 15,000, and has a blue book value of 16,800. In addition, the company received 1,000 cash. Required: Prepare Bremers journal entry for each exchange. Assume all exchanges were determined to have commercial substance.
On January 1, 2022, P Company acquired 80% of S Company forP2,000,000. The fair value of identifiable net assets is P1,800,000. NCI ismeasured at fair value. During 2022, P Company ships merchandise to SCompany costing P1,000, 000 at 20% above cost. Additional data are asfollows:P Company S CompanySales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating Expense 650,000 300,000The ending inventories of S Company includes merchandise from PCompany amounting to P60,000. Impairment of goodwill is P20,000.How much is the consolidated gross profit?
Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000
On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2022, P Company ships merchandise to S Company costing P800, 000 at 25% above cost. Additional data are as follows: P Company S Company Sales 5,500,000 2,500,000 Cost of Sales 3,200,000 1,600,000 Operating Expense 650,000 300,000 The ending inventories of S Company includes merchandise from P Company amounting to P50,000. Impairment of goodwill is P20,000. (INPUT YOUR ANSWERS IN FIGURES. DO NOT PUT ANY COMMA, PESO SIGN, DECIMALS, AND EXTRA SPACES) Consolidated cost of sales is reported at The net income attributable to parent is
Rooster Co. uses the installment sales method. Relevant information follows: 20x1 20x2Sales 300,000 480,000Cost of sales 240,000 336,000Installment receivable - 20x1 180,000 60,000Installment receivable - 20x2 360,000 Rooster Co. repossessed a property that was sold in 20x1 for ₱50,000. Total collections from this sale were₱24,000. Rooster Co. expects to resell the property for ₱30,000 after reconditioning costs of ₱4,000. The normalprofit margin on resale of repossessed property is 30%. 3. How much is the gain or loss on repossession? 4. How much is the total realized gross profit in 20x2? 5. How much is the profit recognized in 20x1?
Rooster Co. uses the installment sales method. Relevant information follows: 20x1 20x2Sales 300,000 480,000Cost of sales 240,000 336,000Installment receivable - 20x1 180,000 60,000Installment receivable - 20x2 360,000 Rooster Co. repossessed a property that was sold in 20x1 for ₱50,000. Total collections from this sale were₱24,000. Rooster Co. expects to resell the property for ₱30,000 after reconditioning costs of ₱4,000. The normalprofit margin on resale of repossessed property is 30%. 3. How much is the gain or loss on repossession? 4. How much is the total realized gross profit in 20x2?
Chapter : Goodwill On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna: PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000. Instructions: a. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna division is $3.350.000. While the fair value less cost to sell is $3.250.000. Prepare the journal entry regarding the situation!
Chapter : Goodwill On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna: PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000. Instructions: a. Calculate the amount of Goodwill that occured from the transaction above and prepare the journal entry if the consideration given is: $4.000.000! b. Company estimates that the useful life of goodwill is 18 years. Prepare the journal entry in regard to the information! c. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna…
Property 1This property was purchased at a cost of R4 500 000 on 1 January 2019. An upfront payment ofR450 000 was made on this date and the remaining R4 050 000 is payable on 31 December 2019.A discount rate of 10% is applicable. The present value factor for R1 at 10% per annum is 0.909.5% of the property is used by the company as its sales and administration office. This isconsidered to be an insignificant portion of the property. The remaining 95% is leased to thirdparties under operating leases. The property cannot be apportioned off and sold separately.Transfer duties of R328 000 plus other abnormal costs of labour amounting to R50 000 wereincurred in getting the property ready to be let out to third parties.During the year, rentals of R775 000 were earned and repairs and maintenance expenses ofR65 000 were paid.The fair value of the property at year end on 31 December 2019 was R5 400 000. Q.2.2 If the company chooses to use the fair value model for measurement after recognition…
Please answer the exercise step by step and clear. Thank you. Sony Corporation paid $350,000 cash for 42% of the voting common stock of Micro Inc. on January 1, 2021. Book value and fair value information for Inc. in this date is as follows: Assets Cash Accounts receivable Inventories Equipment Book Values $60,000 120,000 80,000 340,000 $ 600,000 Fair Values $60,00 Instructions: 1. Prepare the journal entries for purchased investment. 2. Prepare the analysis of the cost versus the book value of the net assets of the investment bought in Micro Inc by Sony Corporation. 3. Prepare the schedule with the differences between the book value and the fair value of the identifiable net assets of Micro Inc. 4. At the end of the year, Micro Inc was: a. Net Income for $300,000 b. Paid dividends at Dec 31, 2021 for $35,000 Prepare the journal entries related with net income and dividends received Sony Corporation for Micro Inc.
The following are several figures reported for Allister and Barone as of December 31, 2021: AllisterBaroneInventory$400,000$200,000Sales 800,000 600,000Investment incomenot given Cost of goods sold 400,000 300,000Operating expenses 180,000 250,000 Allister acquired 70 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $65,000 that was unrecorded on its accounting records and had a five-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $120,000 to Allister for $160,000. Of this amount, 20 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021:
Bracebridge Incorporated and Muskoka Incorporated exchanged equipment, with MuskokaIncorporated also giving Bracebridge Incorporated $450,000 as part of the exchange. The transactionlacks commercial substance. A summary of the exchange (which occurred on December 31, 2020) is asfollows:Equipment Originally Owned byBracebridge IncorporatedEquipment Originally Owned byMuskoka IncorporatedAppraised Value $12,000,000 $11,500,000Cost $14,000,000 $13,500,000Accumulated Depreciation(at December 31, 2020) $6,500,000 $7,000,000Requireda) Prepare all required journal entries in good form on the books of both BracebridgeIncorporated and Muskoka Incorporated. b) Repeat part (a) but assume the transaction has commercial substance.