Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Q: Jones expects an immediate investment of $91,461.30 to return $21,000 annually for six years, with…
A:
Q: Allowance for Doubtful Accounts. An evaluation of accounts receivable indicates that the proper…
A: Bad Debts : When the debtors or customers does not paid the dues from a long time or become…
Q: Please provide solution in good accounting form. Thank you!
A: As per PFRS 15, the revenue is recognized with respect to performance obligation provided. So the…
Q: If the stated interest rate exceeds the market interest rate, a bond will sell at a premium. True or…
A: Bonds are the financial instruments, which are issued so as to raise debt with a fixed interest…
Q: Which of the following businesses would most likely use a Job Order cost system (compared to a…
A: Job Costing is a method of costing that is used when work is carried out according to the customer's…
Q: Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021
A: Given in the question: Account 2021 2020 Cash $5,68,000 $80,000 Accounts…
Q: State the recognition criteria for an intangible asset. ii)Briefly explain the recognition criteria…
A: Cost refers to the money value which business had to spend in order to produce, enhance the goods…
Q: 18 eppertree Company’s financial statements on December 31, 2021, showed the following: Net Sales…
A: Fixed asset turnover is the ratio of how much sales a company is generating through the fixed assets…
Q: Can you please explain the PV that is used to calculate the present value of tax savings. That is:…
A: Tax is calculated and paid to government after, deducting depreciation. Depreciation is a non cash…
Q: rporation entered into a 20 year franchise that allows ZZ Corporation the right to use its…
A: The franchise is special type of business in which business is done under the agreement and annual…
Q: This question builds on your work from B-1. Competition is fierce for the Chicago to Atlanta route,…
A: The chart shows the Increase/ Decrease in the ticket price and its effect on revenue and Gross…
Q: 1. 2. 3. 4. 5. I. MATCHING TYPE. Match the appropriate accounting concepts and principles in Column…
A: Accounting is based on a number of conceptual issues. There are different concepts like accruals…
Q: Bridgeport Corp.’s balance sheet at December 31, 2019, is presented below. BRIDGEPORT CORP. Balance…
A: 1. Journal Entries - Journal Entries are way of recording a transaction into it. It is recorded in…
Q: $3,500.00 on September 1st. After reviewing his September bank statement, he noticed there were a…
A: Bank Reconciliation Statement: It is the statement which is prepared to reconcile the balance of…
Q: Summarize the accounting rules that allow some but not all potential intangibles to be capitalized…
A: intangible object cannot be touched is hard to describe or assign the exact value. it does not have…
Q: Journalize the adjusting entry for the inventory shrinkage for Madison Company for the year ended…
A: When the physical count of Inventory fall short than the inventory as per the inventory records, the…
Q: Select the necessary words from the list of possibilities to complete the following statements. 1.…
A: Auditing- Auditing is the independent review of financial data from any company, regardless of size…
Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…
A: Financial statements: The financial statements are used by owners and different stakeholders for…
Q: Texon Oil is being sued for price fixing and environmental damage. The litigation started this year…
A: Financial Statement- In exchange for investors' money, a business has an obligation to provide them…
Q: A company's total owner's equity at the start of the year was P400,000. The company produced a net…
A: Debt seems to be something, usually money, borrowed by one party from another. Many businesses and…
Q: Jax Incorporated reports the following data for its only product. The company had no beginning…
A: Introduction: The profit a business makes after subtracting the costs of manufacturing and selling…
Q: mber 31, 20x1. contract revenue will Krabs recognize in 20x1? c. 80,747 d. 0 a. 60,747 b. 79,132 TI
A: Contract revenue recognition is a generally accepted accounting principle (GAAP) that helps in…
Q: Cash had a beginning balance of $206,700. During the month, Cash was credited for $48,000 and…
A: Cash balance is the amount of cash that an entity have at a point of time. The ending cash is the…
Q: Write off the $3,890 of accounts receivable due from Jacob Marley. If an amount box does not require…
A: The direct-write off method mean writing off a bad debt expense directly against the corresponding…
Q: t. 1 c. 31 Bonds Payable Premium on Bonds Payable Cash Notes Payable Interest Expense Interest…
A: When bonds are issued in excess over their face value , they are issued at a premium. Premium on…
Q: Consider a lake found in the village of Sturbridge, and then answer the questions that follow. The…
A: Economic Profit - It is the difference between the revenue received and cost incurred including…
Q: Outside consultants are paid $300 in cash, and registration fees to issue PR's new stock are $500.…
A: Intangible Assets: These are the assets which has no physical substance, i.e., which cannot be…
Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…
A: Lets understand the basics. Entuty generally follow one of the two type of costing system which are,…
Q: Bairstow Company manufactures and sells a single product. The following costs were incurred during…
A: The income statement is one of the financial statements of the business which tells about the…
Q: Foyert Corporation requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost…
A: A budget refers to the statement that is prepared based on the estimation of revenue and expenditure…
Q: E6-9 (Algo) Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales…
A: A journal entry is the process of recording or maintaining track of any financial or non-financial…
Q: he cost of a new building that is currently under construction, not for sale but for a company's own…
A: The balance sheet shows the financial position of the company which includes the assets,…
Q: At December 31, Rolison Consulting’s financial records show the following selected account…
A: Closing entries record all the revenue and expenses. The net effect of the closing entries is profit…
Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…
A: A one-time election is available to taxpayers 55 years of age or older which allows them to sell…
Q: Sarasota Corporation purchased debt investments for $57.100 on January 1, 2022. On July 1, 2022,…
A: Debt investments refers to the investment made by an investor in the debt securities of an entity.…
Q: On December 31 of the current year, the following accounts were discovered in the BT21 Company's…
A: Loans or unpaid balances that must be written off because they are no longer considered recoverable…
Q: On January 1, 2019, Ramen Company purchased P1,000,000, 12% bonds of Tamago Company for P1,063,394,…
A: Bond is a debt instrument for company through which company borrows money from investors for a fixed…
Q: Additional information: ROSO COMPANY INCOME STATEMENT Instructions FOR THE YEAR ENDED DECEMBER 31,…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Purnama Sdn Bhd involve in event management business and provide services to private and government…
A: A systematic review of the accuracy and truthfulness of the accounting records of a specific…
Q: Make an amortization table to show the first two payments for the mortgage. Amount of mortgage…
A:
Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of…
A: Under aging of accounts receivable method, required balance of Allowance for Doubtful Accounts is…
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three…
A: FIFO method means the method of inventory in which the goods purchased first is sold first Under…
Q: Problem 2: GHI Corporation entered into a 20-year franchise that allows IS DUN ZZ Corporation the…
A:
Q: CONDENSED INCOME STATEMENT 2017 PBIT Less interest Profit before tax Less tax PAT Add Retained…
A: The cash flow statement also indicates the cash generated or used by the business. The cash flow…
Q: 1. The following budget information is available for the HD Sales Company (HDC) for January: Sales:…
A: Introduction: A pro forma income statement is a statement showing a company's estimated income after…
Q: Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible…
A: Budget refers to the estimation of the incomes and expenses for a specified future period as per the…
Q: Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General…
A: Parent Company: A company that holds more than 50% of shares or controlling interests in another…
Q: 10-27. Henry Mills is responsible for preparing checks, recording cash disbursements, and preparing…
A: Introduction: Internal controls are the methods, rules, and procedures established by a company to…
Q: Simko Company issued $670,000, 10-year, 4 percent bonds on January 1, 2021. The bonds were issued…
A: When, the debentures are issued at less than par value, it is has been issued at discount. The…
Q: 10-27. Henry Mills is responsible for preparing checks, recording cash disbursements, and preparing…
A: Introduction: Internal controls are the methods, rules, and procedures that a company establishes to…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- Pie Corporation acquired 75 percent of Slice Company’s ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice’s net assets at acquisition was $100,000. The book values and fair values of Slice’s assets and liabilities were equal, except for Slice’s buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis.Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.Trial balance data for Pie and Slice on December 31, 20X8, are as follows: A). Record all consolidation entries needed to…SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies: SFFN AZC Fair value of assets $ 3,050,000 $ 1,600,000 Fair value of liabilities 2,575,000 800,000 Reported assets 2,800,000 1,400,000 Reported liabilities 2,500,000 750,000 Net Income for the year 460,000 250,000 How much goodwill will SFFN recognize as a result of its acquisition of AZC? Select one: a. $-0- b. $1,225,000 c. $1,150,000 d. $200,000 e. $1,000,000ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. *In good accounting form, please. Thank you!
- On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for $280,000 cash. At that date, Animation reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x8 and 20x9: Year Comprehensive Income Dividends Paid20x8 $30,000 $5,00020x9 $45,000 $10,000 Bristol reported net income of $100,000 and paid dividends of $30,000 for both the years. 1. Based on the preceding information, what is the amount of consolidated comprehensive income reported for 20x8? 2. What is the amount of consolidated comprehensive income reported for…On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for $280,000 cash. At that date, Animation reported common stock outstanding of $200,000 and retained earnings of $100,000, and the fair value of the noncontrolling interest was $70,000. The book values and fair values of Animation's assets and liabilities were equal, except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life. Animation reported the following data for 20x8 and 20x9: Year Comprehensive Income Dividends Paid20x8 $30,000 $5,00020x9 $45,000 $10,000 Bristol reported net income of $100,000 and paid dividends of $30,000 for both the years. What is the amount of consolidated comprehensive income reported for 20x9? What is the amount of comprehensive income attributable to the controlling interest for 20x8? What is the…At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value of Sky Tech's net assets was $75 million. The fair value of Sky Tech's depreciable assets was $15 million in excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $15 million in dividends.The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:
- Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on Buildings and Equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X8, for Pirate and Ship are as follows: Item Pirate Corporation Ship Company Debit Credit Debit Credit Cash $ 27,000 $8,000 Accounts Receivable 65,000 22,000 Inventory 40,000 30,000 Buildings and Equipment 500,000 235,000 Investment in Row Company 40,000 Investment in Ship Company 108,000 Cost of Goods Sold 150,000 110,000 Depreciation Expense 30,000 10,000 Interest Expense 8,000 3,000 Dividends Declared 24,000 15,000 Accumulated Depreciation $ 140,000 $ 85,000 Accounts Payable 63,000 20,000 Bonds Payable 100,000 50,000 Common Stock 200,000…Pirate Corporation acquired 60 percent ownership of Ship Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Ship Company. Accumulated depreciation on Buildings and Equipment was $75,000 on the acquisition date. Trial balance data at December 31, 20X8, for Pirate and Ship are as follows: Item Pirate Corporation Ship Company Debit Credit Debit Credit Cash $ 27,000 $8,000 Accounts Receivable 65,000 22,000 Inventory 40,000 30,000 Buildings and Equipment 500,000 235,000 Investment in Row Company 40,000 Investment in Ship Company 108,000 Cost of Goods Sold 150,000 110,000 Depreciation Expense 30,000 10,000 Interest Expense 8,000 3,000 Dividends Declared 24,000 15,000 Accumulated Depreciation $ 140,000 $ 85,000 Accounts Payable 63,000 20,000 Bonds Payable 100,000 50,000 Common Stock 200,000….P Company acquired 90% of S Corporation on January 1, 2011, for $2,250,000. S Inc. had net assets at that time with a fair value of $2,500,000. At the time of the acquisition, P Inc. computed the annual excess fair-value amortization to be $20,000, based on the difference between S Inc. net book value and net fair value. Assume the fair value exceeds the book value, and $20,000 pertains to the whole company. Separate from any earnings from S Inc., P Inc. reported net income in 2011 and 2012 of $550,000 and $585,000, respectively. S Inc reported the following net income and dividend payments: for 2011 net income $150,000 and Dividends 30,000 and for 2012 net income 180,000 and Dividends 28,892 Calculate Investment in Starr shown on Patterson's ledger by the end of December 31, 2012. Using Full Equity Methods, please.Consolidated net income for 2012Noncontrolling interest balance on the consolidated statements as of December 31, 2012. Asap
- Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600. At that date, the fair value of Saver's buildings and equipment was $19,000 more than the book value. Accumulated depreciation on this date was $17,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,000. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 53,500 $ 36,000 Accounts Receivable 88,000 15,000 Inventory 100,000 25,000 Land 58,000 26,000 Buildings & Equipment 364,000 152,000…On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc. for$420 million. The fair value of Harman’s identifiable tangible and intangible assets totaled $512 million, and thefair value of liabilities assumed by Pesky was $150 million.Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2018. Management has provided the following information:Fair value of Harman, Inc. $400 millionFair value of Harman’s net assets (excluding goodwill) 370 millionBook value of Harman’s net assets (including goodwill) 410 millionRequired:1. Determine the amount of goodwill that resulted from the Harman acquisition.2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2018, if any.3. If an impairment loss is required, prepare the journal entry to record the loss.Patrick Corporation acquired 100 percent of O’Brien Company’s outstanding common stock on January 1, for $550,000 in cash. O’Brien reported net assets with a carrying amount of $350,000 at that time. Some of O’Brien’s assets either were unrecorded (having been internally developed) or had fair values that differed from book values as follows:Any goodwill is considered to have an indefinite life with no impairment charges during the year.Following are financial statements at the end of the first year for these two companies prepared from their separately maintained accounting systems. O’Brien declared and paid dividends in the same period. Credit balances are indicated by parentheses.a. Show how Patrick computed the $210,000 Income of O’Brien balance. Discuss how you determined which accounting method Patrick uses for its investment in O’Brien.b. Without preparing a worksheet or consolidation entries, determine and explain the totals to be reported for this business combination for the…