Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment of P3,000,000 when S Company's stockholders' equity section appeared as follows: Ordinary Share, P100 par, 25,000 shares issued Share Premium Retained Earnings Total Stockholders' Equity P2,500,000 700,000 800,000 200,000 Assets and liabilities of S Company has book values approximately equal to their fair values except for its inventory with a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair value of P420,000. Assuming the use of full-goodwill approach, compute for the goodwill.
Q: What is the total cost of the investment?
A: Present value of deferred payment = 1,500,000/1.12= 1,339,285.7142857 Ordinary shares =…
Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…
A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…
Q: On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at…
A: Original share = 5000 Stock split = 4 for 2 Number of share at the end = 4/2 * 5000 = 10000
Q: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair…
A: The merger is a process in which the acquirer obtains control over the acquiree. Control is obtained…
Q: issuing at Pl15 per share one-half of the 950,000 ordinary On January 1. 2021, Penn Company began…
A: Shareholders' equity represents a company's net worth or the amount that would be given to investors…
Q: The Parent Company purchased common stock of Sub Company in a series of open-market purchases in…
A: INTRODUCTION: Common stock is what most people see when they consider "stock." All of the shares in…
Q: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by 292,000 issuing 5,000 shares with…
A: The question is related to Consolidated Financial Statements. The parent company (ABC Co.) acquired…
Q: Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share…
A: RE refers to Retained Earnings which is the amount of NI (Net Income) that is left or retained by…
Q: The shareholders equity section of Good ufe Company shows the following on December 31, 2018:…
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: goodwill (income from acquisition) resulting from the business combination
A: Particulars (of EX CORP) Amounts in P Total assets 1,733,250 Less Liabilities 383,250 Net…
Q: Parent Company acquired 18,000 shares of Company's ordinary share on January 1, 2021, for payment of…
A: Under the full goodwill approach, goodwill arising in a business combination is determined as the…
Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000. Happy…
A: when company acquire certain percentage of share in another company the company share the profit…
Q: Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment…
A: A business combination occurs when an entity acquires control over an organization. Generally, the…
Q: SB Corp. is offered 200,000 shares of EX Corp. ordinary shares in exchange for its net assets at…
A: Net assets value = Total assets - Liabilities = 1,733,250 - 383,250 = 1,350,000
Q: On January 1, 2020, Parent Company issued 10,000 shares of its P5 par ordinary share capital for all…
A:
Q: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by 292,000 issuing 5,000 shares with…
A: The question is related to Consolidated Financial Statements. The Financial Statement of Parent and…
Q: Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000…
A: A property dividend is a dividend in kind. In this kind of dividend instead of cash or shares, an…
Q: On January 1, 2020, Vaughn Industries had stock outstanding as follows. 6% Cumulative preferred…
A: Meaning of Earnings-per-share(EPS):- Earnings-per-share is the ratio of the earnings available to…
Q: Senden Company was organized on January 1, 2020 at which date it issued 300,000 ordinary shares of…
A: Treasury stock refers to the purchasing back of the shares of the company that are already issued.
Q: 5. On January 1, 2021, MNO Company acquired 12,500 of the outstanding common shares of Esther…
A: The question is related Business Combination. The details are as under Stake of MNO Comapny in…
Q: What amount should Billy record as share in income of JoeI for the year ended December 31, 2020?
A: Company gets the control over to another company by way of purchasing the shares of another company…
Q: Oriole Company purchased 300 of the 1000 outstanding shares of Sheffield Company's common stock for…
A: Value of investment = Total investment + Net income -Dividend paid
Q: On January 1, 2020, Parent Company issued 10,000 shares of its PS par ordinary share capital for all…
A: Solution Concept The indirect out of pocket cost shall be expensed off immediately in the context of…
Q: On January 2, 2019. Parent Co. acquired all the outstanding common stock of Subsidiary Co. for…
A: Goodwill is calculated by subtracting the fair value of net assets identified from the sum of…
Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…
A: In business combinations, the goodwill occurs where the consideration transferred is more than the…
Q: On July 1, 2021, Matiyaga Company purchased 1,000 shares of Masipag Corp. P100 par ordinary shares…
A: In the context of the given question, we are required to compute the carrying value of Matiyaga's…
Q: The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10…
A: Company means the form of business where management is separately from the owner and has perpetual…
Q: Qutacember 5, 2020, POY company purchased 15,000 shares of SM. SM has 10,000.000 OUTstanding shares.…
A: As per protocol we provide solution to the one question only and as you have asked multiple…
Q: During Year 1, Peninsula Corporation acquired, as financial assets at fair value through profit or…
A:
Q: Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On September 1, 2019, Napakabasic Co. acquired 5,000 shares of the 20,000, P200 par, outstanding…
A: Under FVPL, dividend received will less from the cost of investments and subsequent reporting to be…
Q: Company’s stockholders’ equity as of December 31, 2020 is P7,308,000. On January 1, 2021, Parent…
A: The goodwill or gain on bargain purchase refers to the excess or short amount paid for the…
Q: On January 1, 2020, Parent Company issued 10,000 shares of its P5 par ordinary share capital for all…
A: Business Combination: In a business combination, the acquirer gets ownership of another company via…
Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…
A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…
Q: The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10…
A: Solution : Cost per share issued = (P9,000,000 + P2,700,000) / 900000 = P13 per share Purchase price…
Q: Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000…
A: Retained earnings is that amount of earnings that is accumulated and collected over the period of…
Q: The Parent Company purchased common stock of Sub Company in a series of open-market purchases in…
A: The company may purchase shares in another company. The company reports the shares purchased as an…
Q: Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share…
A: Since dividend is not declared for year 2021 , Chevy Company will only earn dividend income on…
Q: On January 1, 2020, Chen Company acquired 10,000 shares of GHI Corporation for P600, 000. GHI…
A: Investment is the amount invested by the individual or firm in any firm in the form of equity or…
Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…
A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…
Q: SB Corp. is offered 200,000 shares of EX Corp. ordinary shares in exchange for its net assets at…
A: Purchase consideration for business combination = 200,000 shares x P11 per share = P2,200,000…
Q: On January 1, 2020, Parent Company issued 10,000 shares of its P5 par ordinary share capital for all…
A: Answer: A. Debit of P10,000 to the Share Premium.
Q: Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment…
A: Goodwill is the excess of purchase consideration over the fair value of net identifiable assets. It…
Q: On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…
A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…
Q: CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital,…
A: Note: As per our guidelines, only the first three subparts will be answered. 1. Amount charged to…
Q: On January 1, 2020, Marimar Company reported the following shareholder's equity: Share capital,…
A: The Shareholder's equity shows the amount of contribution by the owners to the capital of the…
Q: On January 2, 2020, P Company acquired 80% interest in S Company for P4,125,000 cash. On this date,…
A: Consolidation is the process where a company acquires various small companies by obtaining…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Parent Company acquired 18,000 shares of Company's ordinary share on January 1, 2021, for payment of P3,000,000 when Company's stockholders' equity section appeared as follows: Ordinary Share, P100 par, 25,000 shares issued P2,500,000 Share Premium 700,000 Retained Earnings 800,000 Treasury Shares 1,000 shares Assets and liabilities of Company has book values approximately equal to their fair values except for its inventory with a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair value of P420,000 . Assuming the use of full- goodwill approach, compute for the goodwill.Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What is the carrying amount of the inventory on December 31, 2020? - What is the amount to be recognized in profit or loss for the distribution of the non- cash dividend?
- Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What amount should be reported as retained earnings on December 31, 2020? - What is the dividend payable on December 31, 2020?The accounts below appear in the December 31, 2019 balance of J Company: Authorized ordinary share capital P5,000,000 Unissued ordinary share capital 2,000,000 Subscribed ordinary share capital 1,000,000 Subscription Receivable 400,000 Share Premium 500,000 Retained Earnings 1,100,000 Treasury ShareCost 100,000 In its December 31, 2019 balance sheet, J company should record a total shareholder’s equity of a.P5,500,000 b.P4,900,000 c.P4,800,000 d.P5,100,000