Chapter 3, Problem 32P

Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated by parentheses. Dividends were declared and paid in the same period. Assume that Mergaronite took over Hill on January 1, 2014, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. On January 1, 2014, Hill’s land was undervalued by $20,000, its buildings were overvalued by $30,000, and equipment was undervalued by $60,000. The buildings had a 10-year remaining life; the equipment had a 5-year remaining life. A customer list with an appraised value of $100,000 was developed internally by Hill and was to be written off over a 20-year period.  a. Determine and explain the December 31, 2018, consolidated totals for the following accounts: Revenues Amortization Expense Customer List Cost of Goods Sold Buildings Common Stock Depreciation Expense Equipment…

Marigold Inc. has outstanding 10,600 shares of $10 par value common stock. On July 1, 2020, Marigold reacquired 105 shares at $87 per share. On September 1, Marigold reissued 62 shares at $91 per share. On November 1, Marigold reissued 43 shares at $84 per share. Prepare Marigold's journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 11/1/20

Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market.   At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method.       Cost MJO Common (25,000 shares)   $550,000 JKH Preferred (1,900 shares)   199,500 EKH Common (7,500 shares)   82,500               During 2022 the following events occurred:   4/3/22              Sold 3,000 shares of MJO for $75,000. 9/6/22              Acquired 1,500 shares of  WVO Common for $25 per share.    At 12/31/22, the fair values for Kristopher’s securities were:               MJO Common, $24 per share             JKH Preferred, $103 per share             EKH Common, $13 per share             WVO Common, $27 per share   Required:   Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…