The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved. To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

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Answer 1

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

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Pillow Company is purchasing an 80% interest in the common stock of Sleep Company. Sleep’s balance sheet amounts at book and fair values are as follows:Account Book Value Fair ValueCurrent Assets . . . . . . . . . . . . $ 200,000 $ 250,000Fixed Assets . . . . . . . . . . . . . . 350,000 800,000Liabilities . . . . . . . . . . . . . . . . (200,000) (200,000)Use valuation analysis schedules to determine what adjustments to recorded values of Sleep Company’s accounts will be made in the consolidation process (including the creation of new accounts), if the price paid for the 80% is:a. $800,000.b. $600,000.

Pillow Company is purchasing a 100% interest in the common stock of Sleep Company. Sleep’s balance sheet amounts at book and fair values are as follows: Account Book Value Fair Value Current Assets . . . . . . . . . . . . $ 200,000 $ 250,000 Fixed Assets . . . . . . . . . . . . . . . . 350,000 800,000 Liabilities . . . . . . . . . . . . . . . . . .(200,000) (200,000) Use valuation analysis schedules to determine what adjustments to recorded values of Sleep Company’s accounts will be made in the consolidation process (including the creation of new accounts), if the price paid for the 100% is: a. $1,000,000. b. $500,000.

Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000. Sleep’s balance sheet amounts at book and fair value are as follows: Account Book Value Fair Value Current Assets . . . . . . . . . . . . . . $ 200,000 $ 250,000 Fixed Assets . . . . . . . . . . . . . . . . . 350,000 800,000 Liabilities . . . . . . . . . . . . . . . . . . .. (200,000) (200,000)Use a valuation analysis schedule to determine what will be the amount of the noncontrolling interest in the consolidated balance sheet and how will it be displayed in the consolidated balance sheet.

Answer 2

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

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Answer 3

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

Expert Solution & Answer

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Answer 5

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

Answer 6

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

Answer 7

Chapter 2, Problem 5UTI

(a)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

To prepare: The valuation analysis schedules to determine the adjustments to be recorded.

Answer 8

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

Answer 9

(b)

To determine

Concept Introduction: The value analysis is more of a systematic production review which includes the purchase process and the design of product to make sure the costs are reduced. This can be done using a set of activities including the product designs to make use of parts that have low-tolerance which are affordable, to switch to the components that cost low, including standardization of the parts to ensure the volume discounts are achieved.

The valuation analysis schedules to determine the adjustments to record values of S Company accounts that will be made in the consolidation process if the price paid for 80% is $600000.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 2 - Prob. 1UTI Ch. 2 - Prob. 2UTI Ch. 2 - Prob. 3UTI Ch. 2 - Prob. 4UTI Ch. 2 - Prob. 5UTI Ch. 2 - Prob. 6UTI Ch. 2 - Santos Corporation is considering investing in...Ch. 2 - Prob. 2.1E Ch. 2 - Prob. 2.2E Ch. 2 - Prob. 3.1E

Solution Summary: The author explains that the value analysis is more of a systematic production review which includes the purchase process and the design of product to ensure the costs are reduced.

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