RIVERDALE paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of P20,000, stock registration fees of P10,000 and stock listing application fees of P8,000. Based on the given information, under the acquisition method, what amount relating to business combination would be charged to expense?
Q: Refer to the arrangement in part (b). It would help YellowCard secure lease agreements with students...
A: Journal entry is a process of recording and classifying business transactions into books of accounts...
Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1, 20...
A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance c...
Q: The following information relates to CEE Company: (Refer to image). Assuming CEE Company used the co...
A: Inventory Cost: Inventory carrying cost is the sum of all expenditures incurred in the process of ho...
Q: 1. Issued stock to investors for $13,300 in cash. 2. Purchased used car for $10, 100 cash for use in...
A: The different transactions in the business affects two or more accounts of the business, with one ac...
Q: On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 sh...
A: Purchase price = 900x 32 =28800 brokerage =2% x 28800= 576 losson ssle of shares =(28x100)-(32x100) ...
Q: Using a flexible budgeting approach how do I prepare a performance report for the current department...
A: Flexible Budget in Manufacturing overhead Using the flexible budget in the manufacturing overhead to...
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid...
A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here ...
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: Good will arising from business combination is: a. charged to Retained Earnings after the acquisi...
A: Goodwill refers to amount paid by acquired company in excess of the net assets of the transferring c...
Q: The chart of accounts must be tailorod to an organizations spocific needs. Discuss how the chart of ...
A: Answer: Chart of accounts is the set of the financial accounts that is generally used by any organiz...
Q: 8. Customers' individual accounts are included in a subsidiary ledger referred to as the accounts pa...
A: The subsidiary ledgers are the collections of individual accounts that are of similar nature.
Q: Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What i...
A: Taxable income refers to the amount to which tax is imposed. It is arrived at after allowing certain...
Q: What Does Stockholder's Equity Mean and Define the two main parts of Stockholder's Equity? (200- 300...
A: Financial statements are those statements which are prepared at the end of accounting period for the...
Q: Write the accounting equation of the following business transactions. A=L+OE R. Vitasa started his o...
A: Accounting equation of the business says that total assets in the business must be equal to total li...
Q: Fat Crane's Service Shop started the year with total assets of $324000 and total liabilities of $232...
A: Revenue = $639000 Expenses = $431000
Q: Required information [The following information applies to the questions displayed below.] Following...
A: Journal is the book of primary entry. All the transactions are recorded initially in the journal,acc...
Q: Part A In an article published in The Australian on 4 May 2021, it was noted that the company named ...
A: Solution Concept Going concern Going concern is the fundamental assumption used in t...
Q: Compute for the amount of gain on reversal of inventory write-down on December 31,2021.
A: Inventory write down method refers to an accounting method which is used by the company to record th...
Q: a. summary account. b. special account. c. pass-through account. d. controlling account. to reduce t...
A: The Controlling account in the general ledger summarizes the balances of all the accounts in a parti...
Q: Freeflight Airlines is presently operating at 70 percent of capacity. Management of the airline is c...
A: The division may be incurring losses on individual level but on whole it may be providing benefit to...
Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were ...
A: >Bonds Payable are the source of finance for the companies. >The bondholders are entit...
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: 3. Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, direct l...
A: Cost of goods sold = Direct material + Direct labor + Overhead = 280,000 + 310,700 + 449,...
Q: Esquire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the follow...
A: Income statement is the financial statement which is prepared by the entities to depict the profitab...
Q: On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,...
A: Fair value of 3 years old cow 25000 * 75 cows = P1875000 Fair value of 0.5 year old cow 6900 * 15 =...
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: Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets $ 25,796 $ 30,1...
A: Days Sales Uncollected: The days' sales uncollected ratio is a liquidity measure that creditors and ...
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: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on D...
A: Statement of owner's equity indicates the investment balance of the owner. The ending balance of own...
Q: 16. A source document prepared by the seller that lists the the a. sales invoice. b. purchase invoic...
A: solution note Dear student as per the Q&A guideline we are required to answer the first question...
Q: estimated cash flows before tax (CFBT) are? 10,000; 11,000; R14,000; 15,000 and new machinery. The p...
A: NPV= Present Value of cash inflow - Present value of cash outflow Average rate of return= Average p...
Q: Calculate current ratio, quick ratio and receivable turnover ratio
A: Current assets = 38,761 Current liabilities = 6,850 Inventory = 6,300 Prepaid expense = 800 Average ...
Q: Required information Exercise 5-19 (Algo) Prepaid expenses—insurance LO 10 Skip to question [The ...
A: Prepaid insurance: It implies to the insurance payment made in advance before incurring the expenses...
Q: On the Forbes 2021 list of the World’s Billionaires, Jeff Bezos ranks at the top with a net worth o...
A: Answer: On the Forbes 2021 list of the World’s Billionaires, Jeff Bezos ranks at the top with a net ...
Q: On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% ins...
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: James bought a beachfront house in March 2011 for $140,000. After renting the house out for 3 years,...
A: Sales Consideration $260000 Purchase Price in March 2011 $140000 Capital Gains ...
Q: Explain and answer the following questions below: 1. Explain the measurement of accounts receivable....
A: Note: As per Bartleby guidelines,I am supposed to answer only the first question because these quest...
Q: a1) Prepare an income statement for Ivanhoe Company for the year ended April 30, 2022. (Enter negati...
A: Net income (NI), also known as net earnings, is calculated by subtracting sales from the cost of goo...
Q: Consider the unadjusted trial balance of Riverdale Company at June 30, 2016, and the related month-e...
A: The adjustment entries are prepared at year end and adjusted trial balance is formed at last to prep...
Q: Prepare a cash flow statement for the year ended 30 June 2020. In preparing the report for the cash ...
A: Cash flow statement is the statement which is prepared by the company at the end of period in order ...
Q: Consider a Japanese firm that sells product Y in the local market and contemplates sales to the US. ...
A: a) : Price of Y P = 250 - Q Marginal revenue = 250 - 2Q Marginal cost = 15 At equilibrium MR = MC 25...
Q: Required information [The following information applies to the questions displayed below.] Lawson Co...
A: The balance sheet is a part of financial statements. It indicates the overall position of the busine...
Q: Bonita Company sells tablet PCs combined with Internet service, which permits the tablet to connect ...
A: SOLUTION A JOURNAL IS A COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSATION ARE RECORDED IN CHR...
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: What do we understand, when we say that Social and Economic Accounting is a "comprehensive,
A: GIVEN when we say that Social and Economic Accounting is a "comprehensive, consistent and integrat...
Q: furniture purhased for cash $1,500 make journal entry
A: Journal entry means transactions, which include date explanation and the amount debited and credited...
Q: Multiple choice 1. A list showing the amount due to each supplier as of a specified date is known as...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Selected transactions for Marigold, an interior decorator corporation, in its first month of busines...
A: Increase in assets should be debited and decrease in assets should be credited. Increase in liabilit...
Q: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in Ma...
A: 25% on cost equals to 20% on sales Closing stock = Opening stock + Purchases - Cost of goods sold Ma...
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...
RIVERDALE paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of P20,000, stock registration fees of P10,000 and stock listing application fees of P8,000. Based on the given information, under the acquisition method, what amount relating to business combination would be charged to expense?
Step by step
Solved in 2 steps
- 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…An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices A) P420,000 B) P160,000 C) Nil D) P40,000An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? A. Nil B. 40,000 C. 160,000 D. 420,000
- An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? a. Nilb. P40,000 c. P420,000 d. P160,000An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices P40,000 Nil P420,000 P160,000An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Nil P420,000 P160,000 P40,000
- On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio Issued to the owners of Mason $329,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $32,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $17,000 in connection with stock Issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Presidio Company Mason Company $ 36,200 Items $ 81,900 Receivables 290,000 151,000 Inventory 378,000 178,000 Land 284,000 272,000 Buildings (net) 469,000 280,000 Equipment (net) 194,000 71,100 Accounts payable (179,000) (47,700) Long-term liabilities Common stock-$1 par value Common stock-$20 par value Additional paid-in capital Retained earnings, 1/1/24 (462,000) (329,000) (110,000) в 0 (120,000) (360,000) (585,900) (491,600) Note:…The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts: Соprights Deposits with advertising agency (will be used to promote goodwill) 27,000 Discount on bonds payable Excess of cost over fair value of identifiable net assets of Р30,000 70,000 acquired subsidiary Trademarks 90,000 90,000 In the preparation of Grumpy's balance sheet as of December 31, 2021, what should be reported as total intangible assets?Puncho Company is acquiring the net assets of Semos Company in exchange for common stock valued at $900,000. The Semos identifiable net assets have book and fair values of $400,000 and $800,000, respectively. Compare accounting for the acquisition (including assignment of the price paid) by Puncho with accounting for the sale by Semos.
- The value of the net assets of Adom Plc as disclosed on the statement of financial position at 31 December 2018 was GHC800,000. The book values of the assets approximated their fair values except a property which had its fair value exceeding the book value by GHC40,000 and inventory with a book of GHC 60,000 and a net realizable value of GHC50,000. What is the fair valuation of the business?An acquiring company pays $45 million in cash, and issues new no-par stock with a fair value of $75 million, to the acquired company's former owners, for the assets and liabilities of the acquired company. Registration fees associated with the new stock issuance are $300,000, paid in cash. Consulting fees for the acquisition are $1 million, paid in cash. The fair value of the acquired company's identifiable net assets is $65 million. The entry or entries the acquiring company makes to record the acquisition have what net effect on its account balances? Select one: O A. Capital stock increases by $75 million. O B. Expenses increase by 1.3 million. C. Goodwill increases by $55 million. O D. Cash decreases by $46 million.The Vary Company has total assets with a book value of $3,000,000 and a fair value of $4,000,000. A potential primary beneficiary company has guaranteed the debt of the Vary Company and will receive a share of income of the Vary Company based on contractual terms. The primary beneficiary will also have decision power. a. Will the primary beneficiary company record an investment in the equity of the Vary Company? b. Will the Vary Company need to be consolidated. If it is to be consolidated, what adjustments would be needed in the consolidation process?