GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 19P
To determine
Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Use the following information for Questions 9–10.Porter Co. reported the following on its December 31, 2013, balance sheet:
Liabilities and Stockholders’ Equity:Accounts payable . . . . . . . . . . . . . . . . . . . . $ 3,000Notes payable. . . . . . . . . . . . . . . . . . . . . . . 22,000Bonds payable . . . . . . . . . . . . . . . . . . . . . . 45,000Common stock . . . . . . . . . . . . . . . . . . . . . . 110,000Preferred stock . . . . . . . . . . . . . . . . . . . . . . 20,000Additional paid-in capital . . . . . . . . . . . . . . . 70,000Retained earnings . . . . . . . . . . . . . . . . . . . . 32,000Treasury stock. . . . . . . . . . . . . . . . . . . . . . . 12,000
9. The debt/equity ratio for Porter Co. in 2013 (rounded) isa. 20.5%b. 24.1%c. 28.7%d. 31.8%10. The debt ratio for Porter Co. in 2013 (rounded) isa. 20.5%b. 24.1%c. 28.7%d. 31.8%
Included in Witt Company’s liability account balances on December 31 2017 were the following:
6% note payable issued October 1, 2016..................................................500,000
8% note payable issued April 1, 2016, maturing April 1, 2018....................800,000
o The December 31, 2017 financial statements were issued on March 31, 2018.On January 15, 2018, the entire ₱800,000 balance of 8% note was refinanced by issuance of a long-term obligation payable in a lump sum.
o In addition, on March 10, 2018, Witt Company consummated a non cancelable agreement with the lender to refinance the 6%, ₱500,000 note on a long-term basis, on readily determinable terms that have not yet been implemented.
o Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement’s provisions.
In December 31, 2017 statement of financial position, what amount of the notes payable should be classified as current?
Gibco Limited has an October 31 year end. On September 30, 2020 Gibco had the following current liabilities listed on its books:
Bank credit line........................................... $25,300
Accounts payable........................................ 110,500
CPP, EI and income tax payable.................. 19,620
Unearned revenues.................................... 22,000
During October 2020 Gibco engaged in the following transactions:
Oct 1 Paid $12,000 on the credit line with their bank
Oct 5 Sold goods for $40,000 on which they had previously received a $10,000 deposit. The balance is due in 30 days.
Oct 12 Bought $26,000 of inventory on credit, terms of 30 days.
Oct 15 Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30.
Oct 20 Paid $97,000 owing to a supplier.
Oct 21 Received $5,000 from a client for work that will be performed in January 2021.
Oct 21 Sold…
Chapter 3 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - When a parent company applies the initial value...Ch. 3 - Several years ago, Jenkins Company acquired a...Ch. 3 - Benns adopts the equity method for its 100 percent...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Paar Corporation bought 100 percent of Kimmel,...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - If no legal, regulatory, contractual, competitive,...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - What is Phoenixs consolidated retained earnings...Ch. 3 - On its December 31, 2018, consolidated balance...Ch. 3 - Prob. 13PCh. 3 - Herbert, Inc., acquired all of Rambis Companys...Ch. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Following are selected account balances from...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - On January 1, 2017, Pinnacle Corporation exchanged...Ch. 3 - Following are selected accounts for Mergaronite...Ch. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39APCh. 3 - Prob. 40APCh. 3 - Prob. 1DYSCh. 3 - FASB ASC AND IASB RESEARCH CASE A vice president...Ch. 3 - Prob. 4DYSCh. 3 - Prob. 5DYS
Knowledge Booster
Similar questions
- Maldanado Company has a balance in its Accounts Payable control account of P10,500 on January 1,2021. The subsidiary ledger contains three acounts: Smith Company, balance P3,000; White Company, balance P2,500 and Marino Company, balance P5,000. During January, the following payable-related transactions occured. SMITH COMPANY Purchases: P7,500 Payment: P6,000 Returns: P0 WHITE COMPANY: Purchases: P5,250 Payment: P2,500 Returns: P1,500 MARINO COMPANY: Purchases: P6,100 Payment: P6,750 Returns: P0 How much is the general ledger balance of the Accounts Payable as of January 31, 2021?arrow_forward1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current assets?arrow_forward1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What is the total shareholders equity?arrow_forward
- 1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current liabilities?arrow_forwardThe following trial balance relates to Selt.plc for the year ended 31 December 2021: Equity shares of £1 each Share Premium Retained earnings at 1 January 2021 Property at cost Depreciation on property at 1 January 2021 Plant and equipment at cost Depreciation on plant and equipment at 1 January 2021 Inventory at 1 January 2021 Trade receivables Cash and cash equivalents Trade payables 5% Loan repayable 2026 Revenue Purchases Distribution costs Administrative expenses Research and development expenditure Loan Interest paid Dividend paid Further notes: £'000 34,800 22,800 Required: A Statement of Profit or Loss for the year ended 31 December 2021. A Statement of Financial Position as at 31 December 2021 4,900 4,000 6,840 155,000 22,050 12,750 19,600 300 4,000 287,040 £'000 56,000 2,000 7,780 3,200 4,500 1,560 12,000 200,000 287,040 2) 1) Inventory was valued at £3,800,000 on 31 December 2021. (This valuation is before note (4) below is considered). Property includes land valued at…arrow_forwardOn October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ 125.000, 8% note. What entry must Sue's Carpet Service make on December 31 before financial statements are prepared? A) Interest Expense................................................................. 2.500 Notes Payables.......................................................... 2.500 B) Interest Expense................................................................10.000 Interest Payable ..................................................... 10.000 C) Interest Expense..............................................................2.500 Interest Payable..................................................... 2.500 ID) Interest Payable.............................................................. 2.500 Interest Expense................................................... 2.500arrow_forward
- Selected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below: (in thousands) As of December 31 2014 2013 Cash ................................... $ 21 $ 35 Marketable securities (current) ........... 27 22 Accounts receivable (net) .... 60 98 Inventory ............................ 105 142 Prepaid expenses ................. 5 3 Land and building (net) ......... 247 315 Accounts payable ................ 57 75 Accrued expenses ............... 10 14 Notes payable (short-term) ... 8 4 Bonds payable ..................... 52 66 (in thousands) As of December 31 2014 2013 Cash sales ........................... $750 $675 Credit sales (% of cash sales) ....... 82% 85% Cost of goods sold (percent…arrow_forwardSelected information from the 2014 and 2013 financial statements of Sculley Corporation is presented below: (in thousands) As of December 31 2014 2013 Cash ................................... $ 21 $ 35 Marketable securities (current) ........... 27 22 Accounts receivable (net) .... 60 98 Inventory ............................ 105 142 Prepaid expenses ................. 5 3 Land and building (net) ......... 247 315 Accounts payable ................ 57 75 Accrued expenses ............... 10 14 Notes payable (short-term) ... 8 4 Bonds payable ..................... 52 66 (in thousands) As of December 31 2014 2013 Cash sales ........................... $750 $675 Credit sales (% of cash sales) ....... 82% 85% Cost of goods sold (percent…arrow_forwardOn January 1, 2018, the Apex Company exchanged some shares of common stock it had been holding as aninvestment for a note receivable. The note principal plus interest is due on January 1, 2019. The 2018 incomestatement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. Thestock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry torecord interest revenue at the end of 2018. The company records adjusting entries only at year-endarrow_forward
- The June 30, 2019, balance sheet of Ram Technologies reports the following: Accounts Receivable…………………………………. $265,000 Allowance for Uncollectible Accounts (Cr)…………. 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales. 4 At the end of the year, RAM ages its accounts receivable. RAM then adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During the second half of 20X9, RAM completed the following transactions: July 14 Made a compound entry to write off uncollectible accounts: T.J. Dooley, $700; Design Works, $2,400; and S. DeWitt, $100. Sept. 30 Recorded uncollectible-account expense equal to 2% of credit sales of $140,000 Nov. 22 Wrote off accounts receivable as uncollectible: Transnet, $1,300; Webvan, $2,100; and Alpha Group, $700. Dec. 31 Recorded uncollectible-account expense based on the aging of receivables Age of Accounts…arrow_forwardLizbeth Johnson, controller of Detroit Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Detroit’s financial statements. Below is selected financial information for the fiscal year ended March 31, 2021. Long-term debt Notes payable to banks, 12% .................................................... $ 4,000,000 4% convertible bonds payable ..................................................... 8,000,000 12% bonds payable...................................................................... 3,000,000 Total long-term debt.................................................................................. $15,000,000 Shareholders’ equity Preferred stock, 5% cumulative, $100 par value, 100,000 shares authorized, 50,000 shares issued and outstanding ....................................................................... $ 5,000,000 Common stock, $1 par, 10,000,000 shares authorized,…arrow_forwardAs of December 31 of the current year, Fernandez Company has prepared the following informa-tion regarding its liabilities and other obligations: Notes payable, of which $20,000 will be repaid within thenext 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000Interest expense that will result from existing liabilities overthe next 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000Lawsuit pending against the company, in which $500,000is claimed in damages. Legal counsel can make no reasonableestimate of the company’s ultimate liability at this time . . . . . . . . . . . . . . . . . . . . 400,00020-year bond issue that matures in two years. The entireamount will be repaid from a bond sinking fund . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000Accrued interest on the 20-year bond issue as of the balancesheet date . . . . . . . . . . . . . . . . . . .…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education