Question
Simms Corp. controlled four domestic subsidiaries and one foreign subsidiary. Prior to the current year, Simms Corp. had excluded the foreign subsidiary from consolidation. During the current year, the foreign subsidiary was included in the financial statements. How should this change in accounting entity be reflected in the financial statements?

 

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Value engineering, target pricing, and locked-in costs. Sylvan Creations designs, manufactures, and ...

A: Requirement 1:Determine the full target cost per unit and total target operating income. 

Q: Why is it desirable to use a worksheet when preparing a statement of cash flows? Is a worksheet requ...

A: A Cash flow statement is a financial statement that provides the summarised information regarding ca...

Q: Gerald Englehart Industries changed from the double-declining-balance to the straight-line method in...

A: Click to see the answer

Q: Anti-trust laws and pricing. Global Airlines is a major low-price airline carrier for both domestic ...

A: Requirement 1:Determine the pricing policies of the company are violating the anti-trust laws or not...

Q: If the stock is issued for assets other than cash, describe the recording of this transaction.

A: Common stock: Common stock is the instrument used by the company for raising funds from the general ...

Q: Balanced scorecard. Pineway Electric manufactures electric motors. It competes and plans to grow by ...

A:  

Q: Analyzing the effect of prior-period adjustments Taylor Corporation discovered in 2019 that it had i...

A: Prior period adjustment: It refers to the adjustment made in the current year to rectify the error m...

Q: According to IAS 8, how should prior period errors that are discovered in a subsequent reporting per...

A:  

Q: Customer profitability, distribution. Green Paper Delivery has decided to analyze the profitability ...

A: Customer Profitability Analysis: Customer profitability analysis is the process of ascertaining the ...

Q: The net income for Fallon Company for 2020 was $320,000. During 2020, depreciation on plant assets w...

A: Operating activities: Operating activities refer to the normal activities of a company to carry out ...

Q: S operates in a business environment with a 6% state sales tax rate and a 4% county sales tax rate. ...

A: Prepare the journal entries to reflect the sales tax that will remit to the state and to the county.

Q: Help with G and H

A: (g) Calculate the balance in the Finished Goods Inventory account at the end of the month.

Q: The meaning of the term “fund” depends on the contextin which it is used. Explain its meaning when u...

A: If the fund is a noun: Fund is termed as the contribution of money or an account created by the empl...

Q: Analysis of growth, price-recovery, and productivity components (continuation of 12-19). An analysis...

A: Cost Leadership Strategy: This is a strategy in which a firm distinguishes it by lowering the market...

Q: Classifying items on the statement of cash flows Cash flow items must be categorized into one of fou...

A: Four classifications of cash flow statement activities are: Operating, investing, financing, and non...

Q: Mike Crane is an audit senior of a large public accounting firm who has just been assigned to the Fr...

A: a.The ethical issues are the honesty and integrity of Frost Corporation's financial reporting practi...

Q: For 2015, Pac Co. estimated its two-year equipment warranty costs based on $100 per unit sold in 201...

A: Changes in estimate:When a company revises its previous estimates, the changes in estimates are acco...

Q: Preparing a statement of retained earnings Kingston, Inc. had beginning retained earnings of $135,00...

A: Click to see the answer

Q: The Commonwealth of Virginia filed suit in October 2014, against Northern Timber Corporation seeking...

A: 1.Prepare journal entry to record treasury stock:

Q: You are the newest member of the staff of Brinks & Company, a medium-size investment management ...

A: Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for t...

Q: Operating activities are most closely related to long-term assets. current assets and current liabi...

A: Operating Activities: Operating activities refer to those daily activities of the company involved i...

Q: What is the indirect effect of a change in accounting principle?Briefly describe the reporting of th...

A: Change in an accounting principle: This change occurs when a company decides to change from an accou...

Q: A lease that has a lease term (including any options to terminate or renew that are reasonably certa...

A: Short-term LeaseThis is a type of leasing which has a maximum lease term ranging from 1 year or less...

Q: In 2016, Adonis Industries changed its method of valuing inventory from the average cost method to t...

A: Calculate the changes in inventory value.

Q: Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery shou...

A: The correct answer is Option (c)

Q: Computing the change in cash; identifying non-cash transactions Jennifer’s Wedding Shops earned a ne...

A: 1.

Q: What is a private pension plan? How does a contributorypension plan differ from a noncontributory pl...

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the benefi...

Q: Explain the meaning of the following terms: (a) common-size analysis, (b) vertical analysis, (c) hor...

A: Evaluation of financial information by expressing each item in the financial statement as a percenta...

Q: “The significance of financial statement data is not in theamount alone.” Discuss the meaning of thi...

A: Financial statements: Financial statements are condensed summary of transactions communicated in the...

Q: During 2016, WMC Corporation discovered that its ending inventories reported on its financial statem...

A: 1. 

Q: Strategy, balanced scorecard, service company. Compton Associates is an architectural firm that has ...

A: a. The Compton Associates follow the Cost leadership strategy. The products are sold at a low cost t...

Q: Flay Foods has always used the FIFO inventory costing method for both financial reporting and tax pu...

A: 1. Prepare journal entry to record the change in value of inventory value.

Q: If current assets other than cash increase, what is the effect on cash? What about a decrease in cur...

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalen...

Q: ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11. Legal, p...

A: 1.

Q: In 2016, internal auditors discovered that PKE Displays, Inc., had debited an expense account for th...

A: Calculate the annual accumulated depreciation:

Q: Jackson Health Foods has 8,000 shares of $2 par common stock outstanding, which were issued at $15 p...

A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement ...

Q: How do i adjust entries for a merchanting buisness

A: Adjusting entries are the journal entries passed at the end of the financial year to close all the t...

Q: Journalizing cash and stock dividends Self-Defense Schools, Inc. is authorized to issue 200,000 shar...

A: 1. 

Q: What is reported in the discontinued operations section of the income statement?

A: Discontinued Operations: It is the second section after the continuing operations on the income stat...

Q: Which of the following is not included in continuing operations? Loss on the sale of equipment Gain...

A:  

Q: In recent years, the Wall Street Journal has indicated that many companies have changed their accoun...

A: While preparing the financial statements of company, some genera rules & guidelines have to be f...

Q: Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for fina...

A: Inventory costing method:The costing method that is used to record the cost of goods sold, and endin...

Q: Allocation of corporate costs to divisions. Cathy Carpenter, controller of the Sweet and Salty Snack...

A: 1.Explain the  reason why sweet and salted snacks should allocate corporate cost to division.For eas...