On July 1, 2021, the Statement of Financial Position of Hershey Co. and Kisses Corp. are as follows Hershey Co. Kisses Corp. Assets 4,000,000 2,500,000 Liabilities 1,500,000 800,000 Share Capital, no par 2,000,000 Share Capital, P100 par 1,000,000 Share Premium 700,000 300,000 Retained earnings (200,000) 400,000 Hershey Co. on this date, agreed to acquire all the assets, and assume all the liabilities of Kisses Corp. in exchange for shares of stock that it will issue. The stock of Hershey Co. is selling in the market at P50 per share. The assets of Kisses Corp. are to be appraised, and Hershey Co. is to issu shares of its stock with a market value equal to that of the net assets transferred by Kisses Corp. The value of the assets of Kisses Corp., per appraisal, increased by P300,000. The share capital reflecting the combination under acquisition method is:
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- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.On May 2, 2022, the separate statement of financial position of Peter Corporation and Simon Company are as follows: Peter Simon Cash 145,700 15,000 Accounts receivable 120,500 35,800 Inventories 42,500 10,200 Plant assets 185,800 78,000 Total assets 494,500 139,000 Liabilities 110,400 28,800 Capital stock, P100 par 200,000 50,000 Additional paid-in capita l 50,000 0Retained earnings 134,100 60,700 Total liabilities and equity 494,500 139,500 On May 2, 2022 Peter acquired 90% of Simon's outstanding voting shares for P108,000. Peter incurred additional P32,000 in acquisition- related costs. All the assets of Simon are fairly valued except the plant assets with a fair value of P90,000 on…Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows: Care Current Assets 43,750 Noncurrent Assets 181,250 Liabilities 16,250 Common Stock, P20 par 137,500 APIC 8,750 Retained Earnings 62,500 Charm Current Assets 16,250 Noncurrent Assets 106,250 Liabilities 8,750 Common Stock, P20 par 75,000 APIC 6,250 Retained Earnings 32,500 On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the…
- A comparative balance sheet for Gena Company appears below:GENA COMPANYComparative Balance SheetDec. 31, 2021 Dec. 31, 2020AssetsCash $ 34,000 $11,000Accounts receivable 21,000 13,000Inventory 35,000 17,000Prepaid expenses 6,000 9,000Long-term investments -0- 17,000Equipment 60,000 33,000Accumulated depreciation—equipment (20,000) (15,000)Total assets $136,000 $85,000Liabilities and Stockholders' EquityAccounts payable $ 17,000 $ 7,000Bonds payable 36,000 45,000Common stock 53,000 23,000Retained earnings 30,000 10,000Total liabilities and stockholders' equity $136,000 $85,000Additional information:1. Net income for the year ending December 31, 2021 was $35,000.2. Cash dividends of $15,000 were declared and paid during the year.3. Long-term investments that had a cost of $17,000 were sold for $14,000.4. Depreciation expense for the year was $5,000.InstructionsPrepare a full statement of cash flows for the year ended December 31, 2021, using the indirectmethod.The following information pertains to BT21 Co. for the year.· Net assets, Jan.1, 2021- P1,008,480· Net assets, Dec. 31. 2021- P2,112,960· Share capital issued in 2021- P335,520· Dividends declared in 2021- P195,120How much is the profit (loss)?Lendell Company has these comparative balance sheet data: Lendell CompanyBalance SheetsDecember 31 2020 2019 Cash $ 16,000 $ 31,000 Accounts receivable (net) 69,000 60,000 Inventory 59,000 51,000 Plant assets (net) 198,000 179,000 $342,000 $321,000 Accounts payable $50,000 $60,700 Mortgage payable (15%) 107,500 107,500 Common stock, $10 par 136,500 121,000 Retained earnings 48,000 31,800 $342,000 $321,000 Additional information for 2020: 1. Net income was $24,700. 2. Sales on account were $414,050. Sales returns and allowances amounted to $20,600. 3. Cost of goods sold was $198,000. 4. Net cash provided by operating activities was $44,300. 5. Capital expenditures were $26,400, and cash dividends were $8,800. Compute the following ratios at December 31, 2020. (Round current ratio to 2 decimal places, e.g. 1.67. Round…
- The following information pertains to BTS Co. for the year.· Net assets, Jan.1, 2021- P1,008,480· Net assets, Dec. 31. 2021- P2,112,960· Share capital issued in 2021- P335,520· Dividends declared in 2021- P195,120How much is the profit (loss)?The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…Below is some selected information from the financial statements of ManyFaces, Ltd: As of 12/31/2019 As of 12/31/2020 Total $4,500,320 $3,930,560 Assets Total ????? $2,063,990 Liabilities During the year ended 12/31/2020, the firm reported net income of $250,313, issued $17,000 of Common Stock at par value, and declared and paid $3,000 in Dividends. What is balance of Total Liabilities as of 12/31/2020? Group of answer choices $2,563,750 $2,619,500 $2,904,063 $2,369,437 $2,458,543
- Here is financial information for Metlock, Inc.. Please explain as well :) December 31, 2020 December 31, 2019 Current assets $109,647 $ 93,000 Plant assets (net) 441,982 383,000 Current liabilities 100,640 68,000 Long-term liabilities 137,989 95,000 Common stock, $1 par 131,157 117,000 Retained earnings 181,843 196,000 Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) METLOCK, INC.Condensed Balance SheetDecember 31 Increase or (Decrease) 2020 2019 Amount Percentage Assets Current Assets $109,647 $93,000 $ % Plant assets (net) 441,982 383,000 % Total assets $551,629 $476,000 $ %…Jamison Corp.'s balance sheet accounts as of December 31, 2021 and 2020 and information relating to 2021 activities are presented below. December 31, 2021 2020 AssetsCash $ 440,000 $ 200,000Short-term investments 600,000 —Accounts receivable (net) 1,020,000 1,020,000Inventory 1,380,000 1,200,000Long-term investments 400,000 600,000Plant assets 3,400,000 2,000,000Accumulated depreciation (900,000)…Some selected financial statement items belonging to PXR Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Receivables 18,500 Total Assets 120,000 Current Liabilities 42,000 total liabilities 75,000 Profit after Tax 15,000 Select one: a. The correct answer not available b. 0.205 c. 0.137 d. 0.150 e. 0.125