Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 7, Problem 7.1.2P
To determine
Business combination:
Business combination refers to the combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.
Consolidated financial statements:
The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity. The consolidated financial statements serve the purpose of both the entities about financial information.
Value analysis:
The value analysis in a business combination is an essential part of determining the worth of the acquired entity. The
:
Prepare the consolidated worksheet for Company P and Company S for the year ended December 31, 2015.
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14 -
On 04.05.2020, our enterprise sold 1,000 shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 10 TL each, after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect?
a)
110 Stocks Hs. 12.000 TL Creditor
B)
655 Securities Sales Losses Hs. 2.000 TL Debt
NS)
653 Commission Expenses Hs. 250 TL Borrowed
D)
102 Banks Hs. 9.750 TL Borrowed
TO)
655 Securities Sales Losses Hs. 2.000 TL Creditor
P15-25 Accounting for debt and equity investments
This problem continues the Canyon Canoe Company situation from Chapter 14. Amber Wilson is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securi-ties transactions in 2019.
Jul. 1 Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Canyon Canoe does not have significant influence over Adobe.
Jul 7 Purchased 35% of the stock of Bison Backpacks consisting of 43,750 shares of stock (out of a total of 125,000 shares) for $5 per share. Canyon Canoe does have significant influence over Bison.
Jul 10 Purchased a bond from Camelot Canoes with a face value of $80,000. Canyon Canoe intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31.
Sep. 30 Received dividends of $0.15 per share from Adobe.
Nov. 1 Received dividends of $0.30 per share from Bison.
Dec. 31 Received…
13 -
On 04.05.2020, our enterprise sold 1,000 of the shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 15 TL each, and after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect?
a)
653 Commission Expenses Hs. 250 TL Borrowed
B)
110 Stocks Hs. 12.000 TL Creditor
NS)
655 Securities Sales Profits Hs. 3.000 TL Creditor
D)
102 Banks Hs. 14.750 TL Debtor
TO)
645 Securities Sales Profits Hs. 3.000 TL Debtor
Chapter 7 Solutions
Advanced Accounting
Ch. 7 - Prob. 1UTICh. 7 - Prob. 2UTICh. 7 - Prob. 3UTICh. 7 - Prob. 4UTICh. 7 - Exercise 1 (LO 1) Purchase of shares directly from...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6E
Ch. 7 - Prob. 7.1ECh. 7 - Exercise 7 (LO 4) Equity adjustments with...Ch. 7 - Prob. 8.1ECh. 7 - Prob. 8.2ECh. 7 - Prob. 8.3ECh. 7 - Prob. 7.1.1PCh. 7 - Prob. 7.1.2PCh. 7 - Prob. 7.2.1PCh. 7 - Prob. 7.2.2PCh. 7 - Prob. 7.2.3PCh. 7 - Prob. 7.2.4PCh. 7 - Problem 7-4 (LO 3) Sale of partial, then balance...Ch. 7 - Prob. 7.5PCh. 7 - Prob. 7.7.1PCh. 7 - Prob. 7.8.2PCh. 7 - Prob. 7A.1APCh. 7 - Prob. 7A.2.1APCh. 7 - Prob. 7A.2.2AP
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