6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc's Common Shares for P40,000 in cash. On that date, XYZ's Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity: * ABC P 60,000 100,000 P160.000 P 42,000 20,000 90,000 8,000 P160.000 XYZ P10,000 60,000 P70.000 P35,000 12,000 12,000 11,000 P70.000 Current Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity
Q: displayed below.] The transactions of Belle Company's appear below. 1. D. Belle created a new busine...
A: The T-accounts are prepared as posting the transactions from journal to specific T-accounts of the b...
Q: a. What is the total amount of cash discounts allowed in a year? (Enter your answer in millions roun...
A: solution given Annual credit sales $363 million Discount % 2.75% Discount period 1...
Q: In 2018, SoundSmart Company started its production, specialising in nanufacturing motorcycle helmets...
A: SOLUTION CALCULATION OF MANUFACTURING COST- INDIRECT MATERIALS RM5 *120000 RM600000 FACTORY EQ...
Q: Direct Material Cost per Unit 20.00 Direct Labor Cost 3,000 Manufacturing Overhead 16,000 Selling Ex...
A: Total cost of prodcing included all manufacturing costs in the production process. Prime cost is cos...
Q: A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise...
A: In the given question, the company has paid one-year insurance premium on March 1, 2019. Out of tota...
Q: Instructions: Determine the participation of the partners in the profit of P1,000,000 if profit is d...
A: Solution Given Capital balances of : Bong 350000 Bueno 250000 Bunny 200000 Tot...
Q: The following information from Jumbo Company's first year of operations is to be used in treating th...
A: >Account receivables are the balances of customers or borrowers who owe the business certain amou...
Q: 5. On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabil...
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of identifiab...
Q: Following are the transactions of Sustain Company. June 1 T. James, owner, invested $16,000 cash in ...
A: The practice of capturing commercial transactions for the first time in the account books is known a...
Q: Here are selected transactions of Mason Consulting Service. Post the transactions into the appropria...
A: Ledger accounts are the appropriate T accounts which are used for posting of recorded journal entrie...
Q: ABC Company experienced a decline in the value of its inventory in 2020 which resulted in a write-do...
A: Net realisable value means value at which inventory can be sold or replaced by the business. Invento...
Q: Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the s...
A: Cost per unit = Material (Parts) Cost per unit + Conversion Costs (Direct Labor + Indirect Materials...
Q: General journal for coffee machine
A: Fixed asset is written off in the books of accounts, when there is obsolescence, or the asset is sol...
Q: 3. Pagadian, Inc. reported the following during the year: P400,000 proceeds of life insurance of an ...
A: In case of cash basis of accounting we should recognise revenue and expenses as and when received an...
Q: On June 10, 20X1, an employee of Williams Corporation mistakenly debited Telephone Expense rather th...
A: A rectification entry is a journal entry which is passed in the books of accounts to correct a error...
Q: A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2019. Exercise...
A: Insurance expense is the amount money that has been incurred by the entity to buy the insurance. Ins...
Q: Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer wi...
A: Tax is the amount which an individual or business is liable to pay the government for business opera...
Q: PROBLEM: MAY 1 Mr. Tan obtained the funds to start the business by withdrawing P900,000 from his per...
A: The Question requires to calculate the Accounting Equation balances as on 5 days'. Accounting Equati...
Q: he worksheet consisted of five pairs of debit and credit columns. The amount of one item appeared in...
A: Answer: There is always double entry effect and one single entry can be reflected on both income sta...
Q: QUESTION 43 Ben is a sole trader carrying on a computer repair business and has four employees. Ben ...
A: Fringe benifit are additional benifits provided by employer to its employees on their performance.
Q: You found that opening your own cake shop is a worthwhile project. After scouting around you found o...
A: The concept of Net benefit in cash flows from a project is used to either select or reject a project...
Q: What is a compensating balance?
A: As per the guidelines, only one qustion s allowed to be solved. Please resubmit the questions separa...
Q: 19. After the posting of the accounts payable ledger and general ledger is completed, the total of t...
A: 19 . The general ledger includes account payable ledger . The accounts payable is the creditor for ...
Q: Required information [The following information applies to the questions displayed below.] Following...
A: A journal entry is used to record a business deal in a company's accounting records. A journal entr...
Q: 15 continue.. Headland Corporation was formed 5 years ago through a public subscription of common s...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Cullumber Blossom Corporation Corporation 2022 2022 Net sales $1,815,000 $620,000 Cost of goods sold...
A: The ratio analysis helps to analyze the financial statements of the business with various assets, li...
Q: 14. Which of the following accounts is not used to account for merchandise sales transactions? a. Sa...
A: The term Merchandise means activity which increases sales especially increase sales from retailer to...
Q: Emily, who is single, has been offered a position as a city landscape consultant. The position pays ...
A: Taxable Income- Taxable income a term refers to the base upon which an income tax system imposes tax...
Q: On March 1, 2016, ASG Co. assigned its P1,900,000 accounts receivable to DXB Bank in exchange for a ...
A: solution given Date of assignment March 1 2016 Amount of account receivable assigned 190...
Q: B3. LO 8.5Record the following transactions: Started a petty cash fund in the amount of $340. Rep...
A: Petty cash fund is that fund which is maintained for small petty expenses of the business. Accountin...
Q: Prepare the General Journal entry to record the purchase of Little Bit of Printing. Make sure you sh...
A: General journal entry is the entry which is recorded on the book of original entries at the time whe...
Q: What major items are included in the Retained Earnings Statement?
A: Retained earnings statement is financial statements that states firm income after every payment. Th...
Q: junior banker's salary at Pans bakery has increased to $110,000 per year. This is an example of the:...
A: The level of management help in measurement .There are qualitative and quantitative analysis. Ordin...
Q: mile JungkookCompany reported the following balances at the end of each year: 2020 2019 InventoryP2...
A: Solution Given 2020 2019 Inventory 2600000 2900000 Accounts payable 750000 ...
Q: Diamond Platinum Silver RM RM RM 8,200.00 Selling price per unit Variable costs per unit: 6,500.00 6...
A:
Q: Factory Overhead 4,000
A:
Q: Help Brian May, guitarist for Queen, does not know how to price his signature Antique Cherry Special...
A: Markup = 80% on cost = 290×80% = 232
Q: Matthew Martin, the owner of Innovation Consulting, started the business by investing $58,000 cash. ...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: a. To increase Store Supplies b. To decrease Equipment c. To increase Postage Expense d. To increase...
A: The General Rules of Debit and Credit are: All Debits increase Assets and Expenses. All Debits decr...
Q: Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $140 for a comfor...
A: Mishu Sheet can may for a comforter the amount of selling price minus markup amount
Q: In addition to keeping an eye on her inventory Rita is also a little bit worried amount of cash she ...
A: Bank Reconciliation statement is prepared when there is a difference between cash balance as per cas...
Q: Husserl Company included a coupon in each box of its cereal. For every 10 coupons returned by a cust...
A:
Q: Classify each of the following accounts as an Asset, Liability, or Equity account. a. Factory b. Fur...
A: All expenses which are paid in advance are current assets. All revenues received in advance are curr...
Q: Taxable income of a corporation:
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question separ...
Q: P3.1 (LO 2, 4) (Transactions, Financial Statements—Service Company) Listed below are the transaction...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: 0-year term with an interest rate of 24% per annum, compounded quarterly. The insurance company has ...
A: Given, Loan taken 10,000,000 with 20% interest. After 5 years, refinanced with 20 year loan at 24% p...
Q: Westinghouse Company manufactures major appliances. Because of growing interest in its product, it h...
A: >Mixed Cost is a cost that has the features of BOTH - Variable cost as well as Fixed Cost. &g...
Q: Laval produces lighting fixtures. Budgeted information for its two production departments follows. T...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: What is the difference between ‘Cash’ basis and ‘Accrual’ basis of accounting.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Discuss ROPs and to tal costs.
A: Answer: ROP is defined as reorder point. This is the inventory level that is to be maintained at the...
Step by step
Solved in 2 steps
- 11. Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On January 1, 2022 Parent purchased all of Sub Inc’s Common Shares for P40,000 in cash. On that date, Sub’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of the combined entity should be valued at how much?11. Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On January 1, 2022 Parent purchased all of Sub Inc’s Common Shares for P40,000 in cash. On that date, Sub’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of the combined entity should be valued at how much? 12. Using the same information in #11, Assuming that Consolidated Financial Statements were prepared on that date, the Goodwill of the combined entity should be valued at how much?Taylor Company acquired the assets and assumed the liabilities of Swift Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It was…
- The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?The balance sheet of the proprietorship of Jacob as of June 30, 2018 showed the following assets andliabilities:Cash P 40,000Accounts Receivable 53,600Inventory 88,000Equipment 65,600Accounts Payable 63,520The cash balance included a 200- share certificate of BW Resources common at acquisition cost of P 1,600; the current market quotation is 70 per share. Of the accounts receivable, an estimated 5% is considered to be doubtful of collection. Certain inventory items, booked at a cost of P22,960, are currently worth P16,000. Depreciation has not been recorded; the equipment, acquired two years ago, has a remaining useful life of about eight more years. Prepaid expense of P 12,800 and accrued expense of P 6,120 have not been properly recognized. Emily and Bert will join Jacob in a partnership. Jacob will invest the net assets of his business, after effecting the appropriate adjustments, and he will be allowed credit for goodwill equal to 10% of his initial capital credit. Emily and Bert…Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000.Issued 10,000 ordinary shares at P10 par with a market price of P15.Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid.Share issue costs paid amounted to P15,000.Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It…
- 10. On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y Co. reported the following stockholders’ equity account balances: Ordinary share P800,000, Share premium P620,000, accumulated profits P300,000. The assets and liabilities of Y Co had book values that were approximately equal to its fair values, except building that was undervalued by P400,000, and equipment that was overvalued by P120,000. The building that was undervalued has an estimated life of 20 years and the equipment with 5 years useful life. Prior to acquisition, Y Co. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill to be reported in the consolidated Statement of Financial Position?During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023. is P22.50 and P39.50, respectively. US sa fes 1. How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized rences orations loss 2.How much unrealized gain.orloss on long-term investments should ABC report on its December 31, 2022, stockholders equity? Use negative sign for the unrealized loss 3. How much-unrcalized gain or loss on long-term investments should ABC report on its December 31. 2023. statement of comprehensive income? Use negative sign for the unrealized loss 4. How much-unrealized gain or loss on long term investments should ABC report on its December 31, 2023, stockholders equity? Use negative sign for the unrealized lossCompute for the NCI on June 30, 2023 On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share. At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000. Additional information: • DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group uses the fair value model. • On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation. • The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000. • An impairment test on June 30, 2023 concluded that goodwill is impaired…
- Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive incomeEd Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of P15. Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid. Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Ed Company Sheeran Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000…. During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023, is P22.50 and P39.50, respectively. How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized loss How much unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, stockholder’s equity? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, statement of comprehensive income? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, stockholder’s equity? Use negative sign for the unrealized loss