SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition. 1. As a result of the merger, what is the goodwill?
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $...
A: Lets understand the basics. The times interest earned ratio indicates that, how many time companies ...
Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. ...
A: Formula Total Standard Manufacturing cost = Standard Cost per block x No.of blocks produced.
Q: What is the weighted average cost of capital of Bulldogs Inc.?
A: Solution Concept The weighted average cost of capital is calculated when there are various sources o...
Q: (a) A car manufacturing company purchased an asset for welding and put it into service. Its initial ...
A: Solution Working note Under straight line method Annual depreciation =cost – residual value / ...
Q: Each quarter, Luckey Inc., pays a dividend on its perpetual preferred stock. Today, the stock is sel...
A: Calculation of Quarterly Dividend Quarterly dividend = Current Selling price X Annual Required rate ...
Q: Consolidated financial statements are: I. The financial statements of a group presented as those of...
A: Consolidated financial statement:- It is the financial statement in which the income & expenses,...
Q: Marbel Company was authorized to issue 12% bonds payable with face amount of P5,000,000 on April 1,2...
A: Bonds are those units that are issued by the companies and securitized as tradeable assets. It is a ...
Q: Provide the pros and cons of Sarbanes –Oxley Act (SOX).
A: Pros of Sarbanes Oxley Act 1. Crucial information cannot be witheld from customers By requiring that...
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $...
A: The ratio analysis helps to analyze the financial statements of the business. The times interest rat...
Q: The consulting firm used the following assumptions: The machines never break down. Workers never tak...
A: Standard is the expectations of the company. It is the expected performance which can be achieved wi...
Q: From a consolidated point of view, the intercompany gain or loss on a parent’s sale of a non-depreci...
A: Solution Concept When the consolidated financial statement is to be prepared , the intercompany tran...
Q: During the tax year ending on 30 June 2016, XYZ Ltd, a resident Australian company, received a frank...
A: In this question , we will calculate XYZ Ltd's tax payable or refundable for the 2016 tax year.
Q: Mercedes is assessing which of two windshield suppliersprovides a better environmental design for di...
A: Given as,
Q: Refer to the given information on the different exchange rates relative to the Philippine Peso. Roun...
A: Exchange rates: The exchange rates mean the value of one unit of a country's money in relation t...
Q: Martin Company purchases a machine at the beginning of the year at a cost of $155,000. The machine i...
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by u...
Q: Record each of the following transactions for the Toyota Corporation in general journal form. Assum...
A: Journal Entries- Journal entries refers to the official book of a company which is used to record th...
Q: The client and our firm have agreed on an initial estimated audit fee of $32,000. However, the estim...
A: Company have to do audit of their accounts and they have to audit fee to the CPA firms.
Q: The following costs pertain to Bulacan Corporation’s only product Leather: Direct Materials P 10.00/...
A:
Q: The capital structure of Bulldogs Inc. is comprised of 50% ordinary stock, 25% preferred stock, and ...
A: Formula: Weighted Average Cost of Capital = (Cost of Ordinary Stock X Weightage of Ordinary Stock) +...
Q: ty was $1,500,000. Expenses was $650,000. Capital allowance for this property was $180,000. He recei...
A: Gross salary =$7,000,000 per year. monthly pension =$75,000
Q: Units Cost Transactions a. Inventory, Beginning For the year: b. Purchase, March 5 c. Purchase, Sept...
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are allow...
Q: You have an investment account that started with $4,000 10 years ago and which now has grown to $11,...
A: (a) Holding period return = (Investment at end - Investment at beginning) / Investment at beginning...
Q: The overhead cost per unit of Product A under the activity-based costing system is closest to: Grou...
A: The correct answer is $73.44. Working Calculation of Activity rates Activity Cost Pool Activi...
Q: On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at...
A: Note:- Since you have asked multiple questions, we will solve the first question for you. If you wan...
Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...
A: Lets understand the basics. Days sales outstanding shows how many days it takes to convert credit sa...
Q: H sold land to his sibling for $280,000. The land is used for farming and at the time of the sale ha...
A: The amount earned by an individual or company after deducting costs, allowances, and taxes is referr...
Q: In addition to other costs, Grosha Telephone Company planned to incur $600,000 of fixed manufacturin...
A: Predetermined overhead rate = Estimated manufacturing overhead cost / Estimated total units in the a...
Q: The following data are based on information in the 2019 annual reports of Abercrombie & Fitch, Compa...
A: Net income = Revenue - Expenses Dividend are paid from the net income of the year Retained Earning =...
Q: Jordan Company incurs annual fixed costs of $67,740. Variable costs for Jordan's product are $28.80 ...
A: Formula: Unit contribution margin = Sales price per unit - Variable cost per unit
Q: Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose var...
A: Working notes: Selling price per unit = $134 Variable expenses per unit = $67 Contribution per un...
Q: National Inc. has been hit hard due to pandemic. The company’s analysts predict that earnings and d...
A: Answer) Formula: Price of share today = Next Expected Dividend/ (Cost of Equity – Growth rate) C...
Q: The capital structure of Bulldogs Inc. is comprised of 50% ordinary stock, 25% preferred stock, and ...
A: Formula: Weighted Average Cost of Capital = (Cost of Ordinary Stock X Weightage of Ordinary Stock) +...
Q: You were engaged by CITY CORPORATION, a publicly held company whose shares are traded on the Philip...
A: Shareholder's Equity Shareholder's equity which consist of ordinary shares and preference shares, Tr...
Q: What is the difference in the actual out of pocket cash flows between the two payments? That is, by...
A: In this case the annual end of year payments for the loan will have to be calculated to determine th...
Q: Macanas Company had 125,000 shares issued as of January 1, 2018, which includes 25,000 treasury shar...
A: Answer) Calculation of Number of shares issued Number of shares issued = Total number of shares issu...
Q: dvise Roger as to his taxable income/loss each year. Would your advice be any different if the taxpa...
A: Roger has the following Income Year -1 Year -2 Year-3 Assessable Income $ 50,00...
Q: The Bulldogs Inc.’s stock price is believe to decline from its current level of P125 anytime during ...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose var...
A:
Q: Noel Stewart has estimated that the total fixed costs for his department are £10,000.He also estimat...
A: Fixed costs: Fixed costs means a cost that is not dependent on the level of production of goods or s...
Q: The following information relates to Automative Services on 30 June 2021. Vehicles 135,000 160,000 7...
A: Automative Services Balance Sheet At June 30, 2021 Assets Current Assets Cash at Bank ...
Q: Required information Exercise B-37, 8-38, 8-39, 8-40o (Algo) (LO 8-2, 3, 5) (The folowing informatio...
A: Cost of goods transferred out is the total cost of equivalent units transferred out. Cost of ending ...
Q: The premium on a two-year insurance policy expiring on June 30, 2015, was paid in total on July 1, 2...
A: Insurance expenses for the next 2 years have to be apportioned based on the number of months; so, in...
Q: Company X has two products: Product A and product B. Product A has a higher selling price but a lowe...
A: Solution Concept If a product line has high selling price but a lower contribution margin it implies...
Q: Grouper Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixture...
A: Stockholder's Equity - Stockholder' Equity includes Common Stock, Preferred Stock, Paid in Capital i...
Q: Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of ...
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base a...
Q: If the firm's dividend policy was to pay PO.25 per share each period except when earnings exceed P1....
A: In the given question, the earnings of the company for 2020 are P 3.50 per share. As per company’s p...
Q: In the bottom-up approach basically uses historical data from similar engineering projects to estima...
A: The correct option with proper explanation are as follows.
Q: Acme had a P22,000 favorable fixed overhead budget variance, a P15,000 unfavorable variable overhead...
A: Volume variance arises when there is difference in units produced as per actual and as per budget. I...
Q: Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of it...
A: The differential analysis is performed when two alternatives are available with the organisation.
SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s
1. As a result of the merger, what is the
Step by step
Solved in 3 steps
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 2019.
- Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossLeverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?
- Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde issued a 10% stock dividend on its common stock and paid a cash dividend of 2.00 per share on its preferred stock. Net income for the year ended December 31, 2019, was 780,000. What should be Hydes 2019 basic earnings per share? a. 7.80 b. 7.09 c. 7.68 d. 6.73Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?