Organic Juices, Inc. acquires Healthy Snax Corporation for $80 million in cash, in a merger. Healthy Snax' balance sheet at the date of acquisition is as follows (in millions): Current assets Plant and equipment 104 Long-term debt Intangible assets $16 Current liabilities Total assets 8 Capital stock Retained earnings Treasury stock $19.2 57.6 28.8 (16) $128 Total liabilities and equity $128 A consulting firm values Healthy Snax' plant and equipment at $64 million and its intangibles at $40 million. There are no unreported identifiable intangibles, and all other assets and liabilities are reported at amounts approximating fair value. 38.4 Required: Prepare the journal entry Organic Juices makes to record its acquisition of Healthy Snax. Enter answers in millions. Enter answers using decimal points, when applicable.
Q: Wisdom Company installed a new equipment at the production facility and incurred the following…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: The closing trade receivables as at 31/12/2020 before bad debts written off were £140,000. The…
A: A counter account termed as an allowance for doubtful accounts nets against the total receivables…
Q: Matrix algebra, Calculus and Straight Lines are Quantitative Methods techniques applied in almost…
A: Introduction The emphasis of a quantitative approach seems to be on correct size, quantitative,…
Q: Q.4 Rudolph Corporation is evaluating an extra dividend versus a share repurchase. In either case,…
A: a) Alternative 1, extra Dividends: Dividends per share =11,000/2000 = $5.5 Price of stock after…
Q: On March 1, Bartholomew Company purchased a new stamping machine with a list price of $70,000. The…
A: The cost of an asset or equipment consists of all the costs incurred right from the purchase to…
Q: I. Journalized the following transaction. PERPECTUAL INVENTORY SYSTEM Mr. Tom invested P40, 000 in…
A: Perpetual Inventory System and Periodical Inventory System: To determine inventory levels and…
Q: Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January…
A: A cash flow statement's objective is to present a complete picture of what occurred to a company's…
Q: Treasury Stock Transactions Biscayne Bay Water Inc. bottles and distributes spring water. On May 14…
A: The cost of treasury stock is not reported as an asset; the Cost of treasury stock is reported as a…
Q: Exercise 2.10 (Algo) Preparing a statement of owner's equity and a balance sheet. LO 2-5 At the…
A: The financial statement shows the company's profitability and performance for a particular period.…
Q: Bensen Company started business by acquiring $27,500 cash from the issue of common stock on January…
A: Balance sheet - is one type of financial statement that presents the financial position of the…
Q: ones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most…
A: The practice of traditionally evaluating materials for gold using acid is referred to as "acid-test…
Q: Question 8:- Vaishali Ltd. has furnished the following data pertaining to its business: Variable…
A: Using absorption costing, both variable and fixed cost are included in the product cost. The fixed…
Q: . Provide a good illustration of how businesses should adhere to accounting principles and…
A: Hi student Since there are multiple questions, we will answer only first question. Accounting…
Q: average number of days it takes Rhodes to collect its accounts receivable.
A: Average collection period means the amount of time it requires for a business to receive payments…
Q: Calli buys a laptop for P33, 000 and makes 12% down payment. If Calli agrees to repay the balance in…
A: The question asked to compute the APR for Micah's loan. Annual percentage rate: The annual…
Q: uppose you have a revolving credit account at an annual percentage rate of 12%, and your previous…
A: Under the unpaid balance method, there is a finance charge calculated which is based on the previous…
Q: On January 6, Year 1, Mount Jackson Corporation purchased a tract of land for a factory site for…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: Motorcycle shop advertises a tricycle for P75,000, including taxes. If you fi icycle for three years…
A: Purchase of vehicle is done on the basis of monthly installment payment and these monthly payment…
Q: Aaron Rivers, CPA, is auditing the financial statements of Charger Company, a client for the past…
A: Financial statements are those statements which presents the financial health as well as position of…
Q: Problem 1-7A Analyzing transactions and preparing financial statements P1 P2 Gabi Gram started The…
A: Working : Accounting Equation : ASSETS = LIABILITIES + EQUITY
Q: Required: 1. Use the value basis to allocate joint costs to the three grades of walnuts on the basis…
A: Introduction:- Joint costs occurred when a company produces multiple products within a company. In…
Q: 2. Journalize the entries to record the following: a. The first semiannual interest payment on…
A: Interest expense is the cost incurred to borrow the funds. When the bonds are issued over their face…
Q: 3-a. The appropriate statement of financial position presentation in 20X5 for the vacation carryover…
A: Introduction The recorded revenues, obligations, and better profitability of a firm are indicated…
Q: IV. Prepare a balance sheet in account form using the following information taken from the books of…
A: Meaning of Balance sheet : It is a financial statement that shows assets , liabilities and owner's…
Q: STRAIGHT PROBLEMS The Accounting Equation 65 Problem 1: Answer the questions. Provide the correct…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: If XYZ Corporation is a shareholder of BCD Corporation, how many times will BCD's before-tax income…
A: Tax relief is a reduction in the amount of tax that a person or company has to pay, for example…
Q: Finished goods inventory, ending General and administrative expenses Accounts receivable Finished…
A: Income statement refers to the statement which is one of the financial statements of the company and…
Q: Fast Company has established the following overhead cost pools and cost drivers for the month of…
A: Activity Rate :— It is the rate used to allocate activity cost to cost object. It is calculated by…
Q: Refer to the table below THUNDER INC. granted 5,000 share appreciation rights (SARs) to employees…
A: Share appreciation rights (SARs) is a scheme provided to employees which gives them the right to…
Q: statement of partnership liquidation
A: Liquidation of partnership involves a series of entries. Various points need attention to arrive at…
Q: The Millard Division's operating data for the past two years are provided below: Return on…
A: In Year 1, the margin is calculated by dividing the net operating income by the sales. Since the net…
Q: Brenda Jo Smith is an architect who operates her own business. The accounts and transactions for the…
A: Companies prepare T-accounts to post the debit and credit aspects of a business transaction in a T…
Q: The following information pertains to a machine constructed by the entity: Cost of material to…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: Question 1 On October 6, a credit card account had a balance of P10, 000. A purchase of P3, 000 was…
A: A finance charge is the amount of interest paid by a customer who acquires products or services…
Q: Eddie sells gardening equipment, mostly to small business owners. Half of Eddie's customers pay in…
A: Cash Receipt Budget :— This budget is prepared to estimate the budgeted collection of sales from…
Q: A company has investments in 3-year, 3 percent coupon debt securities, par value $200,000 classified…
A: Debt Securities :— It is one of the source of capital that pays fixed periodic interest and…
Q: We know the followings about a given unit of the company: Planned output was 40,000 Hours, while the…
A: Cost difference indicates the difference in the actual cost of expenditure incurred from the…
Q: In a stock acquisition that results to goodwill, the acquirer should classify it in its separate…
A: Asset is something owned by the business where is liability is something owed by the business. The…
Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an…
A: A level or series of cash flows that occur at the end of each period for a fixed number of periods…
Q: corded services provided on account, P168,000 corded cash from clients for fees earned, P44,500…
A: Journal - A diary is a thorough record of every transaction a firm makes. Information kept in a…
Q: Chico Company paid $600,000 for a basket purchase that included office furniture, a building and…
A: The computation of the allocated cost of the land is shown below: = Purchase value of property ×…
Q: Last year Burch Corporation's cash account decreased by $25,000. Net cash provided by investing…
A: Net cash flow provided by or used in operating activities includes the cash inflows and cash…
Q: accounting provide a common set of standards
A: Accounting standards are authoritative sets of rules for financial reporting. They specify how…
Q: Discount P6421 for 12.68 months at 8% simple interest. IN 2 decimal places.
A: The interest are done on the specified about as a result of which the calculations involve simple…
Q: 6. Randy Houck deposited his paycheck (bank 64-931) for $385.15, a refund check (bank 15-641) from a…
A: Total deposits are the deposits which have been made by the person into the bank account which…
Q: A sales associate presents an owner with an offer for $175,000 on behalf of a buyer. The owner…
A: As per the legal contractual relationships law, An offer can be declined by either the offeree or…
Q: Give different discount rate to both the projects not the same depending on the international…
A: Sure! The discount rate is used to determine the present value of future cash flows. It is the rate…
Q: Problem 10-32 (IFRS) At the beginning of current year, Southstar Company leased a building with the…
A: Lease - An agreement known as a lease specifies the conditions under which one party consents to…
Q: MOSS COMPANY Income Statement For Year Ended December 31, 2019 Sales.. Cost of goods sold. Gross…
A: The cash paid for dividends during 2019 by moss company. is calculated below: Description Amount ($)…
Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,000,000, 6%, 7-year…
A: Discount amortization is the process of allocating the discount on a bond over its remaining life.…
Sh27
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Assets Cash & Receivables. Inventory Land Buildings & Equipment (net) Investment in Solution Dairy Total Assets Liabilities & Stockholders' Equity Current Payables Long-Term Liabilities Common Stock Retained Earnings Total Liabilities & Stockholders' Equity Problem Company $ 132,000 211,000 74,000 409,000 259,200 $ 1,085,200 Solution Dairy $ 88,000 108,000 54,000 228,000 $ 478,000 $ 77,000 254,200 382,000 372,000 $ 30,000 180,000 66,000 202,000 $ 1,085,200 $ 478,000 The fair value of the noncontrolling interest at the date of acquisition was determined to be $28,800. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $9,000 plus $1,100 accrued interest. Solution had recorded the accrued interest, but Problem had not Required: Prepare…LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Total Assets Total Liabilities Amount 15,670,000 4,575,000 Total Shareholder's Equity The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: • Patent on the product that is deemed worthless, P50,000. • Goodwill of P150,000. • Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM's equity balance is P9,500,.000. On December 31, 2022 the following information were provided by NS Services Center: • Net income of 400,000 was recognized. • Patents remaining useful life is 4 years. • Pre-existing goodwill presented above was impaired with a current value of 120,000. • Dividends were declared amounting to…LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Amount Total Assets 15,670,000 Total Liabilities 4,575,000 Total Shareholder’s Equity ? The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: Patent on the product that is deemed worthless, P50,000. Goodwill of P150,000. Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equity balance is P9,500,000. On December 31, 2022 the following information were provided by NS Services Center: Net income of 400,000 was Patents remaining useful life is 4 Pre-existing goodwill presented above was impaired with a current value of 120,000. Dividends were declared…
- A Co. acquired 60% of the outstanding shares of B Co. on January 2, 2021. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of A Co. and B Co. for 2022 are as follows: A Co. B Co.Net Sales P1,093,750 P437,500Cost of Sales 656,250 262,500Gross Profit 437,500 175,000Operating Expenses 131,250 65,625Operating Income 306,250 109,375Dividend Income 70,000 0Net Income P 376,250 P109,375 B Co. made sales to A Co. of P140,000 in 2021 and P210,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P87,500 of which 20% comes from B Co. and inventory on December 31, 2022 amounting to P105,000 of which 30%…LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by payingcash. The consolidated statement of financial position showed the following balances at thedate of acquisition.Consolidated Balances AmountTotal Assets 15,670,000Total Liabilities 4,575,000Total Shareholder’s Equity ?The book value of the net assets of NS Services Center is P4,500,000. The assets of NS ServiceCenter are fairly valued except for the following:• Patent on the product that is deemed worthless, P50,000.• Goodwill of P150,000.• Unrecognized identifiable R&D of P75,000.The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equitybalance is P9,500,000.On December 31, 2022 the following information were provided by NS Services Center:• Net income of 400,000 was recognized.• Patents remaining useful life is 4 years.• Pre-existing goodwill presented above was impaired with a current value of 120,000.• Dividends were declared amounting to P100,000.LGM…A Co. acquired 60% of the outstanding shares of B Co. on January 2, 2021. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of A Co. and B Co. for 2022 are as follows: A Co. B Co.Net Sales P1,093,750 P437,500Cost of Sales 656,250 262,500Gross Profit 437,500 175,000Operating Expenses 131,250 65,625Operating Income 306,250 109,375Dividend Income 70,000 0Net Income P 376,250 P109,375 B Co. made sales to A Co. of P140,000 in 2021 and P210,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P87,500 of which 20% comes from B Co. and inventory on December 31, 2022 amounting to P105,000 of which 30%…
- Anthem Co. acquired 60% of the outstanding shares of Bethel Co. onJanuary 2, 2021. Anthem Co. acquired it at book value which is the sameas its fair value at the date of acquisition. Income Statement of AnthemCo. and Bethel Co. for 2022 are as follows:Anthem Co.Net Sales P875,000Cost of Sales 525,000Gross Profit 350,000Operating Expenses 105,000Operating Income 245,000Dividend Income 56,000Net Income P301,000Bethel Co. made sales to Anthem Co. of P112,000 in 2021 andP168,000 in 2022.Anthem Co. reported inventory on December 31, 2021 amounting toP70,000 of which 20% comes from Bethel Co. and inventory onDecember 31, 2022 amounting to P84,000 of which 30% comes fromBethel Co.Anthem Co. made sales to Bethel Co. of P273,000 in 2021 andP338,000 in 2022.Bethel reported inventory coming from Anthem Co. as of December31, 2021 and December 31, 2022 in the amount of P54,600 andP152,100, respectively.Anthem Co. uses 30% mark-up on cost and Bethel Co. uses 25%mark-up on cost for their selling…On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followir statement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Assets Equity and Liabilities Share capital- Plant assets (ne t) $1,350,000 $1,150,000 ordinary 235,000 Retained earnings Inventory Receivables 1,070,000 587.000 800,000 Accounts payable Cash 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2.550,000. The recoverable…Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015, Sea-Breeze had the following assets and liabilities:The companies’ financial statements for the year ending December 31, 2018, follow:Answer the following questions:a. How can the accountant determine that the parent has applied the initial value method?b. What is the annual excess amortization initially recognized in connection with this acquisition?c. If the parent had applied the equity method, what investment income would the parent have recorded in 2018?d. What amount should the parent report as retained earnings in its January 1, 2018, consolidated balance sheet?e. What is consolidated net income for 2018 and what amounts are attributable to the controlling and noncontrolling interests?f. Within consolidated statements at January 1,…
- Pineapple Company acquired an 80% interest in Samsung Company for $272,000 cash on January 1, 2018. Samsung had the following Balance Sheet on the date of acquisition: Assets $ Liabilities $ Accounts receivable 90,000 Accounts payable 50,000 Depreciable fixed asstes 200,000 Bonds payable 50,000 Land 50,000 Discount on bonds payable (1,620) Goodwill 10,000 Comm stock ($10 par) 100,000 Retained Earnings 151,620 Total Asstes 350,000 Total liabilities & Equity 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fairvalue of $260,000. The Depreciable Assets have a 10 year remaining life.Samsung sold a piece of Land to Pineapple for $60,000 on January 1, 2019. It cost Samsung $50,000 to purchasethe land.On January 1, 2020, Samsung held merchandise acquired from Pineapple for $20,000. This beginning inventoryhad an applicable gross profit of 40%. During 2020, Pineapple sold $60,000 worth of merchandise…X Corp. Acquired 100% of common stock of Y Corp. X Corp. assumed acquisition expenses as follows (amounts in $)(2.5 marks) Legal fees 50,000 Accounting fees 30,000 Travel expenses 10,000 Legal fees (stock issue) 20,000 Accounting fees (stock) 15,000 SEC filing fees (stock) 10,000 Prior to the acquisition date, $90,000 have been paid and capitalized to a deferred charges account on the balance sheet. The remaining $45,000 has not been paid or accrued. Required: Prepare the journal entry to record the acquisition expenses. AnswerOn January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for $124,000. Immediately after the stock acquisition, the statements of financial position of Coronado and Whispering appeared as follows: Assets Cash Accounts receivable Inventory Investment in Whispering Company Plant assets Accumulated depreciation-plant assets Total (b) Liabilities and Owners' Equity Current liabilities Prepare a consolidated balance sheet workpaper as of January 1, 2024. Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total Cash Accounts Receivable Inventory Investment in Whispering Total Difference between Implied and Book Value Plant Assets Accumulated Depreciation Current Liabilities Mortgage Note Payable Common Stock: Coronado Company Whispering Company Other Contributed Capital Coronado Company Whispering Company Total Retained Earnings: Coronado Company Whispering Company Noncontrolling Interest 38,250 Coronado…