Prepare Liquidators Final statement of Account.
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- Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gainS.Co went into liquidation on 1/1/2014. The liquidator whose remuneration is 3% on all assets realized and 2% on amount distribution to shareholders (preference and equity) realized all the assets for $1,00,000. Expense of liquidation $18,000 Unsecured creditors (including salary and wages outstanding $ 12,000 $1,36,000. 10,000 6% preference shares of $30 each (dividend paid up to 31/12/2004) $3,00,000. 20,000 equity shares of $10 each $9 per share are called and paid $1,80,000. General reserve $2,40,000 Profit and loss $40,000 Under Article of association of the company the preference shares have the right to receive 1/3 of the surplus after repaying the equity share capital. Prepare Liquidators Final statement of account.1. On January 1, 2013, the Sara Company entered into a transaction for acquisition of assets andliabilities of Ana Company. Sara issued P400 in long-term liabilities and 40 shares of common stockhaving a par value of P1 per share but a fair value of P10 per share. Sara paid P20 to lawyers,accountants and brokers for assistance in bringing about this purchase. Another P15 was paid inconnection with stock issuance costs. Prior to these transactions, the balance sheets for the twocompanies were as follows: Sara AnaCash P180 P 40Accounts receivable 810 180Inventory 1,080 280Land 600 360Buildings (net) 1,260 440Equipment (net) 480 100Accounts Payable ( 450) ( 80)Long-term liabilities (1,290) (400)Common stock, P1 par (330)Common stock, P20 par (240)Additional paid-in capital (1,080) (340)Retained earnings (1,260) (340)In Sara’s appraisal of Ana, three assets were deemed to be undervalued in the books of Ana: Inventoryby P10, Land by P40 and Buildings by P60.2. Compute the amount of…
- 1. On January 1, 2013, the Sara Company entered into a transaction for acquisition of assets andliabilities of Ana Company. Sara issued P400 in long-term liabilities and 40 shares of common stockhaving a par value of P1 per share but a fair value of P10 per share. Sara paid P20 to lawyers,accountants and brokers for assistance in bringing about this purchase. Another P15 was paid inconnection with stock issuance costs. Prior to these transactions, the balance sheets for the twocompanies were as follows: Sara AnaCash P180 P 40Accounts receivable 810 180Inventory 1,080 280Land 600 360Buildings (net) 1,260 440Equipment (net) 480 100Accounts Payable ( 450) ( 80)Long-term liabilities (1,290) (400)Common stock, P1 par (330)Common stock, P20 par (240)Additional paid-in capital (1,080) (340)Retained earnings (1,260) (340)In Sara’s appraisal of Ana, three assets were deemed to be undervalued in the books of Ana: Inventoryby P10, Land by P40 and Buildings by P60.1. If the transaction is…Andreas Company purchased 30% of the outstanding shares of Rafif Company for $400.000 on January 2, 2023. Information relatedto Rafif's equity position and performance during 2023 is as follows: 02-Jan-23 03-Jan-23 $2.100.000 Retained Earnings $2.900.000 Rafif Company’s Total Equity $5.000.000 20-Jul Rafif Companyannounced and paid a cash dividend of $80.000 05-Oct-23 Rafif Companyannounced and paid a cash dividend of $40.000 31-Dec 2023 Rafif Company reported net income of $650.000 for the year 31-Dec 2023 Rafif Company shares have a market valueof $180 per share Required: Prepare journal entry(ies) needed by Andreas Company to record the investment in Rafif Company from the acquisition date until December 31, 2023, if: The investment has significant influence The investment has insignificant influence and classified as OCIBolitmore Ltd went into voluntary liquidation on 30 June 2017, its summarised statement of financial position then being:Current assetsShare capital:Receivables20,000200,000 shares issued at a priceInventory176000of $10, called to $51,000,000Cash4,000200,000Less: Calls in arrears (20000 at $5)-100,000Non-current assetsLand500,000Plant220,000720,000Total assets920,000Current liabilitiesPayables20,000Total Equity900,000Net assets900,000All assets realised $200,000. Calls in arrears were fully collected. Costs of liquidation were $5000.RequiredRecord the above in the Liquidation account, the Liquidator’s Cash account and the Shareholders’ Distribution account.
- A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s stockholders’ equity consisted of P30,000 common stock, P100,000 additional paid-in-capital, and P200,000 retained earnings. Income and dividends data for B are as follows: Net income (or loss) P50,000 Dividends 5,000 NCI is measured at fair value If A reported separate income from own operations of P120,000 for 2013, what is the consolidated total comprehensive income for 2013?Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required Prepare the acquisition analysis on 1 January 2022. Prepare the consolidation worksheet entries for Dwani Ltd’s group on 1 January 2022.…
