kholders' equity on that date. On April 1, 2021, Lapwing sold 20% interest (one-fourth of its holdings) in Ground for $65,000. During 2021, Ground had net income of $75,000 (earned uniformly) and on July 1, 2021, Ground paid dividends of $40,000. Lapwing uses the equity method to account for the investment.  Required: 1. What is the gain or loss on sale of t

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

Q: On August 1, 2020, Swifty Corporation purchased 20% of the outstanding voting shares in WLT…

A:

Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…

A: The investment is valued under the fair value method if the investment is in less than or equal to…

Q: Pharoah Company owns 3200 of the 10000 outstanding shares of Sheridan Corporation common stock.…

A: % of shares = No. of shares hold / Total outstanding shares of Sheridan Corporation = 3200/10000 =…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: The following computations are done for Hanz Corporation.

Q: Boxer Company owned 20,000 shares of King Company that were purchased in 2019 for $500,000. On May…

A:

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: What Is the investment carrying value at December 31. 2020? a. P6,162,000 b. P5,970,000 c.…

A: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share. At…

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: a)

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: COVAX Corporation was organized on January 1, 2020, at which date it issued 100,000 shares of P10…

A: In case of a company the shareholders are the owners of the company.

Q: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…

A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Cost of the investment = Purchase cost + brokerage - dividend  = 40000*100 + 120000 -…

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: The equity method is the one that is applied when a company has 20% to 50% of stock ownership…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: On January 1, 2020 Psy Company purchased all the net assets of SM Ent. Company: Issuance of 20,000…

A: Computation of Contingent liabilities: Settlement in the form of cash= Estimated settlement value x…

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000.…

A: Lallo will report the net income from investment using the cost method.

Q: On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea…

A:

Q: On January 1, 2021, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of…

A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

Q: Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1,…

A: 1) journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: A journal entry means the record the all business transaction of the company during the year for…

Q: On February 28, 2021, Dow sold 56,000 common shares. In keeping with its long-term share repurchase…

A: Earning per share is the portion of the total earnings of the company which is to be distributed to…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: Here we can see that ping corporation has purchased 10,000 shares out of 50,000 shares.  Therefore…

Q: On July 1, 2020, Allen Corporation purchased 30% of the 84,000 outstanding common shares of Towne…

A: Significant influence means the power or right to participate in the policy decisions of the…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea…

A: Here discuss about the details of the equity investment and its carrying value after added up the…

Q: On January 1, 2021, Patter Corp. purchased 80% of the outstanding shares of Saturn Co. at a cost of…

A: Solution Working- 1- Amortization excess = 50000/4 =12500. 2-Inter company dividend =…

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

A: Investment means engaging the funds to generate income for the coming years. Investment can be made…

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

A:

Q: On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip…

A: Your investment in the subsidiary will be recognized using the equity method or the fair value…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: It is pertinent to note that transaction costs incurred for equity instruments designated at fair…

Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: On January 2, 2020, Howdy Doody Corporation purchased 17% of Ranger Corporation's common stock for…

A: The investment income is recorded in the income statement for dividend revenue or income due to…

Q: On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for…

A: Unrealized Gain : As per PFRS (Philippine Financial Reporting Standard) 9, An investment will be…

Q: ayable       $ 56,700 Accounts receivable $ 43,800       Additional paid-in capital         50,000…

A: Journal entry A journal entry is a record of the business transactions within the accounting books…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 1, 2020, KISSES acquired 90% of the equity share capital of HUGS in a share exchange in…

A: Introduction As per acquisition accounting if any entity acquires another entity then asset is…

Q: BuyCo, Inc., holds 23 percent of the outstanding shares of Marqueen Company and appropriately…

A: Part 1:

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Cost of Shares purchased : = 40000 shares * P100 per share  = 4000000   Brokerage Fees : 120000…

Q: On June 27, 2021, GHI Co. distributed to its ordinary shareholders 100,000 outstanding ordinary…

A: Following is the answer to the given question

Q: Fish Galore Corp. bought 25% of Fin Chaser Corporation's stock for $70,000 on January 1, 2020.…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a…

A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.