The total consideration received from share issuances was $4,000,000. A flat sum payment of $800,000 was used to purchase a plot of land and a structure. On the land and building, a $200,000 mortgage was assumed. Throughout the year, instalments totaling $160,000 were made on the mortgage that was taken out on the land and structure. The instalments include interest in the amount of 20,000. Bank loans enabled the additional capital of £400,000 to be acquired. Throughout the year, none of the bank loans were paid back. A second mortgage on the land and building was necessary for 50% of the bank loans. As of the year's conclusion, no interest had accumulated. There were 120,000 in declared but unpaid dividends for the year. No other business dealings during the year had an impact on liabilities. As of December 31, 2021, retained earnings were $240,000. What amount will the assets total as of December 31, 2021?

The total consideration received from share issuances was $4,000,000. A flat sum payment of $800,000 was used to purchase a plot of land and a structure. On the land and building, a $200,000 mortgage was assumed. Throughout the year, instalments totaling $160,000 were made on the mortgage that was taken out on the land and structure. The instalments include interest in the amount of 20,000. Bank loans enabled the additional capital of £400,000 to be acquired. Throughout the year, none of the bank loans were paid back. A second mortgage on the land and building was necessary for 50% of the bank loans. As of the year's conclusion, no interest had accumulated. There were 120,000 in declared but unpaid dividends for the year. No other business dealings during the year had an impact on liabilities. As of December 31, 2021, retained earnings were $240,000. What amount will the assets total as of December 31, 2021?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...

See similar textbooks

Similar questions

During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds issued by Makenzie Inc. b. Acquired land valued at 105,000 in exchange for machinery. c. Sold equipment with original cost of 810,000 for 495,000; accumulated depreciation taken on the equipment to the point of sale was 270,000. d. Purchased new machinery for 180,000. e. Purchased common stock in Lemmons Company for 82,500. Required: 1. Prepare the net cash from investing activities section of the statement of cash flows. 2. CONCEPTUAL CONNECTION Usually, the net cash from investing activities is negative. How can Craig cover this negative cash flow? What other information would you like to have to make this decision?
BTS Co. was incorporated on January 1, 2021. The following were the transactions during the year:• Total consideration from share issuances amounted to ₱4,000,000.• A land and building were acquired through a lump sum payment of ₱800,000. A mortgage amounting to ₱200,000 was assumed on the land and building. • Total payments of ₱160,000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱20,000. • Additional capital of ₱400,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱120,000. • No other transactions during the year affected liabilities.• Retained earnings as of December 31, 2021 is ₱240,000.How much is the total assets as of December 31, 2021?How much is the profit for the…
[The following information applies to the questions displayed below.]As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 520,000 shares for $600,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $370,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $637,000. Required:1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a)Record the purchase of AMC Supplies shares for $600,000 as a long-term investment. b)Record Painters' Equipment's share of AMC Supplies' $370,000 net income. c) Record the cash dividend of 25 cents per share. d)Record any necessary year-end…
BT21 Co. was incorporated on January 1, 2021. The following were the transactions during the year:• Total consideration from share issuances amounted to ₱4,000,000.• A land and building were acquired through a lump sum payment of ₱800,000. A mortgage amounting to ₱200,000 was assumed on the land and building. • Total payments of ₱160,000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱20,000. • Additional capital of ₱400,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱120,000. • No other transactions during the year affected liabilities.• Retained earnings as of December 31, 2021 is ₱240,000.How much is the profit for the year?
Hong Banjang was incorporated on January 1, 2020. The following were the transactions during the year:• Total consideration from share issuances amounted to ₱400000.• A land and building were acquired through a lump sum payment of ₱80000. A mortgage amounting to ₱20000 was assumed on the land and building. • Total payments of ₱16000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to ₱2000. • Additional capital of ₱40000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. • There is no accrued interest as of year-end. • Dividends declared during the year but remained unpaid amounted to ₱12000. • No other transactions during the year affected liabilities.• Retained earnings as of December 31, 2020 is ₱24000.How much is the total assets as of December 31, 2020?
At the beginning of the current year, Lemon Company purchased 40% of the outstanding ordinary shares of an investee paying ₱2,560, 000 when the carrying amount of the net assets of the investee equaled ₱5,000,000. The difference was attributed to building which had a carrying amount of ₱1,000,000 and a fair market value of ₱1,600,000, and to machinery with a carrying amount of ₱1,200,000 and fair market value of ₱2,000,000. The remaining useful life of the machinery and building was 4 years and 12 years, respectively. During the current year, the investee reported net loss of ₱1,600,000 and paid dividends of ₱1,000,000. What is the carrying amount of the investment in associate at year end? A. ₱1,420,000 B. ₱ 1,270,000 C. ₱ 2,700,000 D. ₱ 2,550,000
As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Ltd’s 400,000 shares for OMR480,000 at the beginning of the financial year of both companies. On the purchase date, the fair value and the book value of AMC’s net assets were equal. During the year, AMC earned net income of OMR250,000 and distributed cash dividends of OMR0.250 per share. At year-end, the fair value of the shares is OMR505,000. Required: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (Cost Method) 2.Assume significant influence was acquired. Re-enact the appropriate journal entries from the purchase through the end of the year to report the investment balance in the consolidated financial statements of Painters’ Equipment Company. (Equity Method)
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000 shares for $590,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $360,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $626,000. Record Painters' Equipment's share of AMC Supplies' $360,000 net income. Record the cash dividend of 30 cents per share. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $626,000 at year-end.
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 1. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. 2. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. 3. Record the cash dividend of 20 cents per share. 4. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.’s 8 million shares for $56 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is $52 million.Required:Prepare the appropriate journal entries from the purchase through the end of the year.
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $74 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $32 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $70 million. Required:Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).)
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc.'s 10 million shares for $70 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $45 million and distributed cash dividends of $1.00 per share. At the end of the year, the fair value of the shares is $66 million. Required:Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) 1. Record the investment in Nursery Supplies shares. 2.Record the investor's share of net income. 3. Record the cash dividends received from Nursery Supplies shares. 4.Record fair value adjustment at year-end.