of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows: Total Assets Liabilities Power $ 564,000 180,000 Strong $ 216,000 65,000
Q: the gross profit percentage in the current year improve, or decline, relative to 39% gross profit…
A: Gross Profit are the direct earning which any company earn from there production. This Includes…
Q: Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and…
A: Income statement is the one which is prepared to depict the profitability of the entity. It is…
Q: In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa…
A: In the case of construction contracts revenue and gross profit are recognized on the basis of the…
Q: Exercise 1-19 (Algo) Computation of Fair Value LO 1-5 Prant Company acquired all of Sedford…
A: Fair value accounting is used to determine the assets and liabilities of the firm based on their…
Q: Determine the maintained markup percent and gross margin percent for a department with the following…
A: Gross profit means the profit earned by selling the goods without considering the indirect expenses…
Q: Required: 1) Provide all consolidating entries required as of December 31, 20X4, to prepare…
A: Dividend Declared by Sharp Company = 10000Pierce company have share in the…
Q: During 2017, Cullumber Company entered into the following transactions. 1. Purchased equipment for…
A: Tabular analysis in accounting is prepared to show the effect of each transaction on the accounting…
Q: Selected year-end account balances from the adjusted trial balance as of December 31, 2025, for…
A: Closing entries are journal entries that are passed at the end of accounting period to transfer the…
Q: Smith Distributors, Inc., supplies ice cream shops with various toppings for making sundaes. On…
A: Lets understand the basics.Estimated cost of toppings lost in fire means the amount of money spent…
Q: Goodheart Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process…
A: Conversion costs represent the expenditures a manufacturing corporation incurs while transforming…
Q: Required information [The following information applies to the questions displayed below.] Assume…
A: Answer:- Depreciation meaning:- Depreciation is the term for the decline in value of tangible asses…
Q: Wildhorse Company reported these income statement data for a 2-year period. Sales revenue Beginning…
A: The income statement provides details on the financial outcomes of a company's operations throughout…
Q: Concord Corporation incurred the following costs for 66000 units: Variable costs Fixed costs $396000…
A: For break-even point, all the costs incurred are covered with revenue but there are no profits…
Q: A company acquired a franchise for $300,000. The franchise agreement is for a period of six years.…
A: Amortization is considered an expense that is charged on the value of intangible assets. It is…
Q: What is the appropriate balance for Fairmount's Allowance for Doubtful Accounts at December 31, Year…
A: Age-based groups are used to combine all outstanding accounts receivable, and each group is given a…
Q: ook Inc. accepts on April 1, 2022 a 120-day 12% note for $8,000 worth of accounts receivable past…
A: At maturity, notes are often utilized in a variety of financial transactions, including loans,…
Q: rd Fauntleroy Co. purchased machinery that cost $3,000,000 on January 4, 2019. The entire cost was…
A: Given, cost of equipment = $3,000,000Estimated useful life = 9 yearsResidual value =…
Q: Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted…
A: The cost of goods sold includes the cost of goods that are sold during the period. The overhead is…
Q: QUESTION 3 4 Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under…
A: Revenue refers to the income generated by a company or organization through the sale of goods or…
Q: Hulme Company operates a small manufacturing facility as a supplement to its regular service…
A: Under straight-line method of depreciation a fixed amount of depreciation is charged each year.
Q: Sheridan, Inc. received the following information from its pension plan trustee concerning the…
A: A defined benefit plan, more commonly known as a pension plan, where you know the amount of…
Q: Martinez Company completed its first year of operations on December 31, 2025. Its initial income…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Required information [The following information applies to the questions displayed below] The first…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Question 13 of 15. Noelle placed a rental property in service on February 1, 2022. On June 1, she…
A: The depreciation recovery period is the time period over which the cost of a tangible asset is…
Q: Barbieri Co. makes aluminum canoes. The company's June costs for material and labor were as follows:…
A: Direct cost is the product cost which is directly incurred on the making of the products. It…
Q: Duke Company hired a new accountant late in December 2020 who made several errors when closing the…
A: Statement of retained earnings is one of the financial statements that shows change in amount of…
Q: Activity Purchasing Assembling Packaging Allocation Base Number of purchase orders Number of parts…
A: Lets understand the basics.Total costs for the product is all cost that are incurred to product…
Q: Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month…
A: Journal entry :Method of recording financial transactions in the book of original entry by debiting…
Q: 0:29:44 The following materials standards have been established for a particular product: Standard…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: Required: Compute the net income and earnings-per-share amounts that would be reported in Alan's…
A: Net income is the profit a company earns after deducting all expenses from its total revenues during…
Q: On December 1, Daw Company accepts a $26,000, 45-day, 6% note from a customer. (1) Prepare the…
A: A note receivable is a written promise to receive a specific amount of cash from another party on…
Q: [The following information applies to the questions displayed below] Sierra Company manufactures…
A: Cost of goods sold (COGS) refers to the direct cost of producing the goods sold by a company. This…
Q: Which of the following is NOT a separately stated item? Section 179 expense deduction. Charitable…
A: This question is related to the Federal tax reporting system and concerns the disclosure of items.
Q: Belle Company reports the following information for the current year. All beginning inventory…
A: The income statement is prepared to record the revenue and expense of the current period. The…
Q: Munoz Company operates three segments. Income statements for the segments imply that profitability…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Oriole Company Income Statement For the Year Ended December 31, 2025 $144,000 Net sales Gain on the…
A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…
Q: Cost Flow Relationships The following information is available for the first month of operations of…
A: Cost of goods manufactured :— It is the total cost of completed finished goods transferred from work…
Q: Prepare journal entries for this ec
A: Journal entries refer to the recording of the transactions in the debit and credit format which…
Q: Kim, a U.S. citizen
A: Gross Income. Gross income means all income an individual received in the form of…
Q: 1.4A Classify the following items into liabilities and assets: (a) Computers (b) Buildings (c)…
A: LIABILITIES Liabilities are one of the important elements of Balance sheet. Liabilities Include…
Q: [The following information applies to the questions displayed below.] Warnerwoods Company uses a…
A: Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…
Q: Describe the differences between process costing and job costing.
A: Process costing:- Process costing is a method of costing used mainly in manufacturing where units…
Q: Raw materials inventory Work in process inventory Materials purchased in March. Direct labor in…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Prepare a 2021 balance sheet for Willis Corporation based on the following information: Cash…
A: Balance sheet is one of the financial statements that shows list of final ending balances of assets,…
Q: Monty Ltd. uses the perpetual inventory system and reports the following inventory transactions for…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: The following are several figures reported for Allister and Barone as of December 31, 2021: Allister…
A: Net Income is the total amount of money a company earns after deducting all its expenses and taxes…
Q: The following are several figures reported for Poyer and Sutter as of December 31, 2024: Sutter $…
A: A consolidated financial statement is a statement of record of all combined financial statement of…
Q: Best Buy uses the lower-of-cost-or-net realizable value basis for its inventory. The following data…
A: Inventory is one of important and useful current asset being used in business. Under lower of cost…
Q: Lauder Company manufactures and distributes various fixtures used primarily in new building…
A: ABC costing system is the costing system in which the supporting costs are assigned to the products…
Q: While reviewing last year's performance outcomes for comparison to this year, Linda finds several…
A: The problem is related to the ratio computation and finding the missing data by applying the related…
Step by step
Solved in 3 steps with 1 images
- The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares. On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: Plant assets Long-term debt The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Assets Liabilities and Equity J Ltd. $ 20,900 9,700 71,900 7,400 $ 109,900 $ 64,400 $ 30,100 98,900 45,200 155,800 46,600 91,500 (12,000) $ 410,600 $ 109,900 Fair value $ 65,700 42,800 E Ltd. was identified as the acquirer in the combination. Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method. Assets E Ltd.…Fair value journal entries, trading investmentsThe investments of Charger Inc. include a single investment: 14,500shares of Raiders Inc. common stock purchased on February 24, Year 1,for $38 per share including brokerage commission. These shares werelassified as trading securities. As of the December 31, Year 1, balancesheet date, the share price had increased to $42 per share. a. Journalize the entries to acquire the investment on February 24 andrecord the adjustment to fair value on December 31, Year 1.b. How is the unrealized gain or loss for trading investments reported onthe financial statements?Accounting for Asset and Stock Purchases Assume an investor purchases an investee's net assets with a cash payment of $800 and issuance to the investee's shareholders of 160 shares of $1 par value common stock with a current fair value of $19.00 per share. In addition, we assume the purchaser paid an additional $40 of transaction costs to a third party (e.g., appraiser or broker) and provided the seller with contingent consideration with a fair value of $160 at the date of acquisition. The investee has the following net assets at current appraised fair value and historical book value: Plant and equipment Land Patent Total Required Investee Fair Value Investee Book Value $320 $600 840 600 960 80 $2,400 $1,000 a. Provide the journal entry on the investor's books for the purchase of the individual net assets of the investee. Assume the acquired net assets do not qualify as a business. b. Provide the journal entry on the investor's books for the purchase of the individual net assets of the…
- Peace Company issued common shares with a par value of $58,000 and a market value of $165,300 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date: Assets Cash Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Accounts Payable SYMBOL CORPORATION Balance Sheet January 1, 20X2 Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities Book Value Fair Value $ 57,000 $ 57,000 97,000 97,000 133,000 163,000 55,000 70,000 505,000 326,000 (245,000) Investment income (loss) Balance in the investment account $ 602,000 $ 22,000 172,000 148,000 12,000 248,000 $ 602,000 32,000 $ 745,000 $ 22,000 172,000 The estimated economic life of the patents held by Symbol is 10 years. The buildings and equipment are expected to last 12 more years on average. Symbol paid dividends of $18,000 during…The following transactions appear on the Equity investments at fair value through profit or loss account of Chicker Corporation Date Particulars Debit Credit 03/1/x6 Purchased 40,000 shares of PLDT at P 30.75/share and 20,000 shares of Benpress at P 23/share P 1,690,000 07/03/x6 Purchased PAG-IBIG 15% bonds, face value P 4,000,000. Interest dates July 1 and Jan 1. Maturity date July 1, 20x9 4,000,000 11/5/x6 Sold 14,400 shares of PLDT at P 30/share And 4,000 shares of Benpress at P 25/share P532,000 12/31/x6 Sold PAG-IBIG bonds at 98 plus accrued interest…Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 x $25 $387,500 BVD Company 20,000 X$18 $360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company $19 $23 BVD Company |$22 $28 REQUIREMENTS: Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises…
- Peace Company issued common shares with a par value of $59,000 and a market value of $159,300 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date: Assets Cash Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment SYMBOL CORPORATION Balance Sheet January 1, 20X2 Book Value Fair Value $ 57,000 86,000 137,000 $ 57,000 86,000 167,000 59,000 74,000 505,000 328,000 (245,000) 33,000 Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ 599,000 $ 745,000 $ 22,000 192,000 137,000 11,000 237,000 $ 599,000 $ 22,000 192,000 The estimated economic life of the patents held by Symbol is 4 years. The buildings and equipment are expected to last 6 more years on average. Symbol paid dividends of $15,000 during 20X2 and reported net income of $87,000 for the year. Required:…The following transactions appear on the equity investments at fair value through profit or loss account of THE EAST Corporation Date Particulars Debit Credit 03/1/x6 Purchased 40,000 shares of ABCD at P 30.75/share and 20,000 shares of Benpress at P 23/share Purchased CTRL 15% bonds, face value P 4,000,000. Interest dates July 1 and Jan 1. Maturity date July 1, 20x9 Sold 14,400 shares of ABCD at P 30/share And 4,000 shares of Benpress at P 25/share Sold PAG-IBIG bonds at 98 plus accrued interest P 1,690,000 07/03/x6 4,000,000 11/5/x6 P532,000 4,220,000 12/31/x6 i. On October 1,20x6 THE EAST received 8,000 shares of ABCD as stock dividend i. Benpress declared a 15% stock dividend to all stockholders of record as of November 15, 20x6 payable on December 1,20x6 REQUIRED: Based on the data above, how much is the adjusted balance of THE EAST'S equity investments at fair value through profit or loss as of December 31, 2016?Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 760 $34,124 Pavlov Co. 2,060 48,204 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $53 per share and the Pavlov Co. stock had a market value of $42 per share. Galileo Company had net income of $264,300 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: $ $ b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for…
- Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?A corporation is studying the possibility of acquiring Entity E whose statement of financial position had the following balances at the date of valuation: Current assets 450,000 Investments 150,000 PPE-net 1,200,000 Accounts payable 130,000 Accrued liabilities 110,000 Bonds payable 300,000 Share capital 150,000 Share premium 510,000 Retained earnings 600,000 According to an appraisal report requested by the company, the investments had a fair value of P450,000 and the inventory was understated by P240,000. All other assets and equities are properly stated. An examination of Entity E's income for the last 4 years indicates that the net income has steadily increased by 20%. Entity E had a net operating income of P300,000 in the year of valuation. The valuation expert believes that a normal rate of return for a business of this type is 16%. Assets are expected to stay the same for the next 4 years. Determine the estimated value of Entity E assuming goodwill is computed through…Art Incorporated's statement of financial position as at June 30, Year 8, is as follow: Cashi Accounts receivable Inventory Property, Plant and Equipment (net) Land Total assets Art Incorporated Statement of Financial Position As of June 30, Year 8 Current liabilities Long-term debt Common shares Retained earnings Total liabilities and equities On July 1, Year 8, Historical Corp purchase the net asset of Art Incorporated for $1,000,000 Carrying Value $ 15,000 23,000 115,500 854,000 250,000 $ 1,257,500 $ 54,000 335,000 450,000 418,500 $ 1,257,500 Required a) Prepare the journal entries in the accounting records of Historical Corp to record the business combinations. b) Prepare the journal entries in the accounting records of Art Incorporated to record the sale of the net asset. Fair Market Value $ $ 15,000 20,000 120,000 780,000 380,000 54,000 300,000