Hw.44. The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following sum
Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $70,320.…
A: Calculation of trade secret. Excel Formulas that are used for calculations:-
Q: Current Assets Accounts receivable Eventory Prepaid expenses Fixed Assets Gross plant and equipment…
A: Income Statement An accounting statement that records the expenses incurred and revenues earned for…
Q: Those with borrowing from yourself. O Personal Loans may be eligible from their accounts. This…
A: Borrowing from yourself, by taking a loan from your own savings has the benefit of not requiring a…
Q: Mikkeli OY acquired a brand name with an indefinite life in 2021 for 43,600 markkas. At December 31,…
A: According to IAS 36 Impairment of Assets' the assets are termed to have been impaired if the…
Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: Required Calculate Airspace's liquidity and efficiency ratios for 2023 and 2022. (Round she final…
A: Efficiency ratios established the relationship between assets and sales in different ways it uses…
Q: Rojer Company manufactures one product. Its variable manufacturing overhead is applied to production…
A: The income and remuneration given to the employees who have a direct relationship to specific goods…
Q: Eddie sells gardening equipment, mostly to small business owners. Half of Eddie's customers pay in…
A: Cash Receipt Budget :— This budget is prepared to estimate the budgeted collection of sales from…
Q: LO8, 9 Bluesky Ltd undertook the following transactions during the financial year ended 30 June…
A: Retained earnings means earnings accumulated by the business over the period of time. Bonus issue…
Q: Determine the missing amount for each separate situation involving
A: The total manufacturing cost is calculated by taking the addition of direct material use, direct…
Q: At the beginning of the year, Cullumber Company had total assets of $732,000 and total liabilities…
A: Total assets refer to the addition of the owner’s equity and the total liabilities. It describes…
Q: KLP produce 3 products A, B, C. They have a bottleneck on one machine with it being operational for…
A: Throughput contribution per time period of bottleneck :— It is calculated by dividing throughput…
Q: The Toro Cutlery Company has collected monthly sales information below: SALES MONTH 15,000 May…
A:
Q: Treasury warrants Treasury bills, due on 1/31/2021 (purchased on 1/31/2020) Treasury bills, due on…
A: Cash & Cash Equivalent - Cash equivalents are investment instruments with good credit quality…
Q: 48. $230,000 O $205,000 O $140,000 O OO 49. In the current year, Peeta Company reported book income…
A: Schedule M-1 is the bridge (reconciliation) between the books and records of a corporation and its…
Q: Lecture Example 2. Accounting for Debenture Issue A company issues a prospectus for the issue of…
A: As per the guidelines, in the case of two or more independent questions, the solution to the first…
Q: at Co. (a CCPC) reported a net income for tax purposes of $800,000 in Year 1. In Year 1, Kat Co.…
A: Every citizen have to pay the income tax on the income but some incomes are exempted from the taxes…
Q: Costs re
A: Relevant cost is essentially avoidable costs that are incurred only when making particular business…
Q: Required information [The following information applies to the questions displayed below.] Martinez…
A: Formula : Average Fixed manufacturing overhead cost per unit = Fixed manufacturing overhead cost /…
Q: Provide the journal entires for the Governmental Fund and Governmental Activity. Taxes levied due…
A: Fund accounting - is an accounting method or system used to record the amount received against…
Q: cost
A: The decision to accept or reject a special order depends on various factors. Fixed expenses are…
Q: 1) Joe says to Bill, "If you call me that name again I'm going to beat you bloody!" Is this an…
A: Assault states whoever makes any gesture knowing it to be likely that such thing would cause any…
Q: Calli buys a laptop for P33, 000 and makes 12% down payment. If Calli agrees to repay the balance in…
A: The question asked to compute the APR for Micah's loan. Annual percentage rate: The annual…
Q: The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3,…
A: For tax purposes, the computation of gross income then reducing deductions for AGI to reach the…
Q: How did you calculate cash flow to stockholders? How did you calculate beginning and ending equity?
A: Cash flow to stock holders is the net amount paid to stockholders during the year. It is calculated…
Q: 4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold?…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output. Variable costs…
Q: Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired…
A: For December 31, 2019: No journal entry required For December 31, 2020: Debit: Interest…
Q: WJM is a corporation owned by Wenjoy, John Prosper and Mica which was organized in 2015. In the year…
A: The portion of gross income used to determine the amount of tax due for a specific tax year is…
Q: The folllowing financial information is presented for three different companies. Determine the…
A: The net sales revenue is calculated as excess of gross sales over total sales discount, returns and…
Q: Salamon Company purchased equipment on January 1, 2020 for $90,000. It is estimated that the…
A: Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life…
Q: 1. Suppose the following historic data is available that can be used to predict if someone would…
A: Loan - A loan is a resource that a business holds. The lender receives the money once the borrower…
Q: REQUIRED Prepare the Statement of Changes in Equity for the year ended 28 February 2022 INFORMATION…
A: The statement of changes in equity refers to the financial statement which measures the changes in…
Q: hang Company reported Cost of goods sold of $735,000, beginning Inventory of $37,200 and ending…
A: It is important to average inventory over two or more financial period in order to determine average…
Q: Quatro Co. owns 95% of the shares of Cinco Co. (both CCPCs). Both companies have assets that have…
A: Business reorganisation means changes in the constitution of the business. Owners may be changed or…
Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…
A: SSC will be the reporting entity. The book value incorporating goodwill will be contrasted with the…
Q: Co. A had the following accounts and account balances for its investiment in 2,000 shares of Ford Co…
A: Trading securities: It is a type of securities purchased by an investor for the short term. The…
Q: Rosewood Company made a loan of $8,400 to one of the company's employees on April 1, Year 1. The…
A: The company sometimes offers loans to its employees. The company earns interest on the loan provided…
Q: A partial list of a common-size percentage for ABC Co. Ltd is given. Details December Current…
A: Under common-size percentages the income statements each line item is expressed as percentage of…
Q: A resident capital company has a tax base of SAR 1,000,000 and Saudi shares in its ownership is 30%.…
A: The tax liability computed on the taxable income (which is calculated according to tax laws and…
Q: Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the…
A: Accounting standards are form of rules, regulations and guidelines which needs to be followed by…
Q: 9. A type of depreciation is due to the reduction of the physical ability of an equipment or asset…
A: Depreciation: it is a gradual exhaustion of the usefulness of a property. Different types of…
Q: How to calcualate the final tax for Kim Johnson for taxable income of $233,000. Assume he is a…
A: Tax is a liability for the company that would be calculated on the income earned by the company. It…
Q: Hi the first part of the answer was incorrect but the second part was correct
A: The question is a follow-up question. The leaner has re-posted the question with the query so we…
Q: The small firm wants a 1-year fixed-rate loan. A bank's base rate is 6.14 percent. Adjustment for…
A: Bank loan - A loan occurs when one or more people, organizations, or other entities lend money to…
Q: x Your answer is incorrect. The shareholders' equity of Crane Corporation is $98,400. Its total…
A: Total assets refers to the sum of the book values of all assets owned by an individual, company, or…
Q: Issuer Co. issued bonds with a face value of $200,000 and a stated rate of 3% on January 1, Year 1.…
A: The bonds are the financial instruments for the business that are used to raise money from the…
Q: Co. A engaged in the following transactions during July 2020. The company uses the Perpetual…
A: For accounting purposes, the journal entries are done to keep and maintain the records of all the…
Q: delinquent taxes
A: Delinquent taxes are taxes owed to the government authorities that you haven’t paid. Taxes are…
Q: In Australia: How to get the final tax for Kim Johnson for taxable income of $233,000. Assume he is…
A: To calculate the final tax for Kim Johnson, you will need to consider the following:
Q: A farmer in Vietnam has 240,000 square metres (m2) of land on which he grows maize, barley,…
A: When there are multiple products but only one key factor:- Step 1:- Rank the product on the basis of…
Hw.44.
The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided:
Retained earnings at 1/7/2021 $476,000
Current period profit for year ended 30/6/2022 $236,000
Required:
a) Based on the financial information you have available, prepare the
b) Briefly explain what effect these journal entries have on the consolidated financial reports.
Step by step
Solved in 2 steps
- On January 1, 2021, LISAYAH LTD. acquired 70% of outstanding ordinary shares of JICHU INC. at aprice of P210,000. On the same date, the net assets of JICHU INC. were reported at P260,000. OnJanuary 1, 2021, LISAYAH LTD. reported retained earnings of P2,000,000 while JICHU INC. reportedretained earnings of P200,000.All the assets and liabilities of JICHU INC. are fairly valued except machinery, which is undervaluedby P80,000 and inventory which is overvalued by P10,000. The said machinery has remaining usefullife of five years while 40% of the said inventory remained unsold at the end of 2021.For the year ended December 31, 2021, LISAYAH LTD. reported net income of P1,000,000 anddeclared dividends of P200,000 in the separate financial statements while JICHU INC. reported netincome of P150,000 and declared dividends of P20,000 in the separate financial statements. LISAYAHLTD. accounted the investment in JICHU INC. using cost method in the separate financial statements.…The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $236,000 Retained earnings at 1/7/2020 $476,000 Current period profit for year ended 30/6/2021 $117,000 a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2021.On 1 July 2021, James Ltd acquired all the issued shares of Dean Ltd for $350,000. At this date, the financial statements of Dean Ltd showed the following: $ Share capital 270,000 Retained earnings 26,500 General Reserve 8,800 Total equity 305,300 Goodwill 25,000 At acquisition date, all the net identifiable assets and liabilities in Dean Ltd were recorded at amounts equal to their fair value except for: Asset Carrying amount ($) Fair Value ($) Inventories 15,000 18,000 Plant (cost $400,000) 210,000 220,000 The Plant was calculated to have a further life of 5 years, and was depreciated on a straight-line basis. All inventory was sold by 30 June 2020. Assume 30% tax rate Required: Prepare the acquisition analysis at 1 July 2021. Prepare the consolidation entries at acquisition date, 1 July 2021. Include narrations for each entry. Prepare the consolidation worksheet as at 1 July 2021. Prepare a Balance sheet for the reporting Group, James Ltd as at 1 July 2021 in narrative format.
- On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At acquisition, PA had retained earnings of R1 400 000. When preparing the J Group’s consolidated financial statements for the year end date of 31/12/x3, accountants at the group entity are working with the following information: In the x3 financial year, Entity PA made a profit after tax of R 1 230 000; In the x3 financial year, PA paid a dividend totaling R45 000 to its shareholders; At the end of the x3 financial year, the group’s investment in PA is found to have impaired by R94 000. Based on this information, calculate the group’s investment in associate figure, in its consolidated financial statements dated 31/12/x3.Blue Ray Bhd. acquired all the assets and liabilities of Sharp Bhd. on 1 July 2021. Given below are the statements of financial position of Blue Ray and Sharp Bhd. as at 1 July 2021: Blue Ray (RM’000) Sharp (RM’000) Non-Current Tangible Assets 400,000 230,000 Goodwill 50,000 Shares in Sharp (30,000) 40,000 490,000 230,000 Current Asset 56,000 36,000 Total Assets 546,000 266,000 Current Liabilities (40,000) (20,000) 506,000 246,000 Ordinary Share capital at RM1 ach 400,000 150,000 Retained Profits 106,000 96,000 506,000 246,000 The acquisition was undertaken under the following terms: Blue Ray agreed to issue 200,000,000 ordinary shares. It was agreed that the fair value of the shares of Blue Ray for the acquisitions is RM1.60. Sharp will go into liquidation. The fair value of the assets and liabilities of Sharp were estimated to be: Tangible Assets…Blue Ray Bhd. acquired all the assets and liabilities of Sharp Bhd. on 1 July 2021. Given below are the statements of financial position of Blue Ray and Sharp Bhd. as at 1 July 2021: Blue Ray (RM’000) Sharp (RM’000) Non-Current Tangible Assets 400,000 230,000 Goodwill 50,000 Shares in Sharp (30,000) 40,000 490,000 230,000 Current Asset 56,000 36,000 Total Assets 546,000 266,000 Current Liabilities (40,000) (20,000) 506,000 246,000 Ordinary Share capital at RM1 ach 400,000 150,000 Retained Profits 106,000 96,000 506,000 246,000 The acquisition was undertaken under the following terms: Blue Ray agreed to issue 200,000,000 ordinary shares. It was agreed that the fair value of the shares of Blue Ray for the acquisitions is RM1.60. Sharp will go into liquidation. The fair value of the assets and liabilities of Sharp were estimated to be: Tangible Assets…
- Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What is Mokwena Limited’s share of the net assets in Masibi Limited?Select one:a.R250 000b.R353 280c.R120 000d.R100 000Mokwena Limited acquired 48% investment in Masibi Limited at R100 000. At the date of acquisition, which is 31 March2016, Masibi Limited’s statement of financial position showed the following balances:Non-current assets R692 000Current assets R44 000Non-current liabilities R268 000Current liabilities R218 000Mokwena Limited applies equity accounting for all its investments in associates and joint ventures. The financial year-endfor Mokwena Limited is on 31 March of each year.What amount will be recorded as investment in associate in Mokwena Limited’s statement of financial position as at 31March 2016?On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that date, the equity of Von was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Von during 2003 to 2007: Year Profit (Loss)2023 P200,0002024 (2,000,000)2025 (2,500,000)2026 160,0002027 300,000 1. The carrying amount of the investment in Von, Inc. as of December 31,2024 is2. The amount to be recognized in 2025 profit or loss related to the investment in Von, Inc. is3. The amount to be recognized in 2026 profit or loss related to the investment in Von, Inc. is4. The amount to be recognized in 2027 profit or loss related to the investment in Von, Inc. is5. The amount of the investment in Von, Inc. as of December 31,2027 is6. Prepare all journal entries from 2023 to 2027
- The parent company invested in walleye company when it consists Ordinary share 480,000 and Retained Earnings 200000 at 1/1/2019, on that date the excess of cost over book value is due to a $70,000 undervaluation of inventory, a $150,000 overvaluation of building and 100,000 undervaluation’s of equipment. The non-controlling of interest in the date of acquisitions was$160000 and goodwill 100000. During the first-year operation (2019) the subsidiary net income was 180000 and paid dividend 75,000- and second-year (2020) income was240,000 and 100000 dividends, all noncurrent assets have 10years useful life, answer the following questions: 1) The amount Cost of Parents’s purchase of Subsidiary on January 1, 2019 is: 2) The investment account in 31/12/2020 is: 3) The non-controlling interest in 31/12/2019 is: 4) The consolidate income in 31/12/2019 is: 5) The unamortized value in 31/12/2020 is:9.On January 1, 2021, White Company acquired 25,000 shares of Black Company for P900,000. Black has 100,000 total outstanding shares. Black’s assets and liabilities approximate their fair values. In 2021, Black reported profit of P2,000,000, declared and paid cash dividends of P600,000 and reported property revaluation decrease of P80,000. In its financial statements for the year ended December 31, 2021, how much should White Company report as share in the associate’s profit and investment in associate, respectively? 500,000 ; 1,170,000 500,000 ; 1,270,000 500,000 ; 1,230,000 500,000 ; 1,270,000On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P100,000. Net assets of SCO were fairly valued except for inventory which was understated by P1,500,000. A third of these inventories remained unsold as of the end of the calendar year. The operations of the two companies for 2021 are as follows: PCO SCO Sales P3,100,000 P2,600,000 (COGS) (1,300,000) (1,250,000) Gross profit 1,800,000 1,350,000 (OPEX) (200,000) (150,000) Other income 0 200,000 (Other expenses) (120,000) 0 Net income P1,480,000 P 400,000 Q1: In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the cost of goods sold? 1,550,000 1,850,000 3,550,000 3,250,000 Q2: based on the information above, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to…