Sutton Company purchased 10% of the outstanding stock of Roberts Company on January 1, 2012. Roberts re
Q: A pair of earrings is priced at P30,000. A client made a down payment of P5,000 and promised to pay ...
A: Price = P30,000 Down payment = P5,000 Balance (PV) = 30,000-5,000 = P25,000 Interest rate = 3% Month...
Q: On February 10, 2010, after issuance of its financial statements for 2009, House Company entered int...
A: GIVEN On February 10, 2010, after issuance of its financial statements for 2009, House Company ent...
Q: Sage Industries and Pronghorn Inc. enter into an agreement that requires Pronghorn Inc. to build thr...
A: The question is based on the concept of Lease Accounting.
Q: The firm converts certain type of transactions in which the tax implication is favorable to the firm...
A: Do things like buy, sell, rent, lease, and recapitalize. If managers structure transactions such tha...
Q: Freetown Manufacturing company acquired three patents in January 2016. The patents have different l...
A: As per Bartelby policy, only three interlink parts are answered. If you want any specific part to be...
Q: In 2010, Payton Corporation began selling a new line of products that carry a two-year warram the es...
A: Warranty is a form of assurance being provided by the seller to the buyer that in case product will ...
Q: Apple Inc. iPod Division has the following information: Sales $6,000,000 Variable costs 3,000,000 Fi...
A: Fixed costs are those cost which are to be incurred irrespective whether there is production or not....
Q: Extracts from CeeCee's accounts: Statement of Comprehensive Income, Statement of Financial Position ...
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or str...
Q: received by nonresident individuals from a depository bank under the expanded foreign currency depos...
A: The answer has been mentioned below.
Q: The board of directors declared cash dividends totaling $229,400 during the current year. The compar...
A: The dividend is declared to the shareholders from the retained earnings of the business.
Q: An objective of the statement of cash flows is to disclose changes during the period in all asset ...
A: The cash flow statement is an essential part of the financial statements of the company. It is usefu...
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit ...
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...
Q: on Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. C...
A: Standard costing Standard costing is that costing method that estimates future costs and checks the ...
Q: Lakeview Manufacturing has the following factory labour costs: Factory-Gross wages $284,000 Producti...
A: Note: Sales salaries expenses are not related to the factor expenses. Sales salaries expense charged...
Q: The units-of-production method of depreciation charges a varying amount of expense for each period o...
A: Depreciation expense based on the units-of-production method charges the depreciation for each based...
Q: Scenario 5—In 2021, The U.S. government sends $100 of stimulus checks to households, which household...
A: Answer: $50. Explanation: Investment refers to the part of income which is saved for capital formati...
Q: On December 31, 2022, ALR, Inc. classified one of its plant assets (land) as held for sale. The carr...
A: 1. Journal entry to reclassify the land held for sale 31/12/22 Land held for sale 2000000 ...
Q: On September 30, 2022, the company sold old equipment for $27,600. The equipment was purchased on Ja...
A: Depreciation - Depreciation is incurred on the assets for normal usage, wear and tear, obsolescence....
Q: Metlock Inc. was incorporated in 2019 to operate as a computer software service firm, with an accoun...
A: A journal entry is the act of keeping making records of any transaction either economic or non econo...
Q: [The following information applies to the questions displayed below.] A company reports the followin...
A: The inventory can be valued using various methods as FIFO, LIFO an average method.
Q: ABC Company provided the following information on December 31, 2020: Note payable Trade 3,000,000 Ba...
A: Current liabilities are a company's short-term financial obligations that are due within one year or...
Q: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC as...
A: The Total Incone tax expense will be P5,650,000.
Q: So-called 6-month or 12-month same-as-cash offers allow you to pay off the whole balance within a ce...
A:
Q: Jean's an things is a factory which makes term clothing. At the end of the accounting year December ...
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred to manufactured g...
Q: a. He deposited P400,000 in a bank account in the name of the business. b. He bought chairs and a ta...
A: The t-accounts are prepared to record the transactions to specific accounts and find the final balan...
Q: Drivers by Product Estimated Use Estimated Overhead of Activity Cost Pools Cost Drivers Cost Drivers...
A: The overhead per unit is calculated as total overhead cost divided by number of units. Total cost = ...
Q: Gensource Company provided the following information from its accounting records for 2021: Estimated...
A: The predetermined overhead rates are used to allocate the overhead. It can be calculated on the basi...
Q: On which of the following would the year-end Retained Earnings balance be stated correctly?A. Unadju...
A: Retained Earnings (RE) are the accumulated portion of a company's profits that aren't released as di...
Q: Miguel Wing has decided to enter contract with uber service provider in his area. The driver offers ...
A: Solution A service provider is an organisation that that provides the services , consulting ,legal, ...
Q: Wolford Department Store is located in midtown Metropolis. During the past several years, net income...
A: Balance Sheet - This is the statement that contains balances as on the particular date. It includes ...
Q: A company purchased a delivery van for $23,000 with a salvage value of $3,000 on September 1, 2009. ...
A: Depreciation as per straight-line method = (cost - salvage value)/useful life
Q: The December 31, 2019 statement of financial position of Help Company included the following informa...
A: You have posted a multi-part question, as per Bartleby policy only the first three interlink questio...
Q: Calculate the Gross Margin of the most recent year. Enter answer as decimal
A:
Q: Trey Monson starts a merchandising business on December 1 and enters into the following three invent...
A: Solution Concept FIFO method means the method of inventory in which the goods purchased first is sol...
Q: DEF Corporation breaks even at P60,000 sales and earns P6,000 at P70,000 sales. Which of the followi...
A:
Q: The following information relates to the defined benefit pension plan of ABC Company for the year en...
A: RECONCILITION OF PLAN ASSETS AND DEFINED BENEFIR OBLIGATION (DBO) (AMT IN Php) PARTICULARS...
Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As payme...
A: Answer - Part 1 - PV of consideration receivable (see computation b 503,105Carrying amo...
Q: Which of the following statements is (are) correct? (x) Part of the administrative burden of a tax...
A: A mortgage is a contract between borrower and a lender that provides the lender the right to take th...
Q: Detemine the present value of the following single amounts (FV of $1, PV of $1. FVA of $1, PVA of $1...
A: Let's understand some basics Present value is the value in the present of a sum of money, in contras...
Q: Show that the accounting equation is satisfied after taking into consideration each of the following...
A: Introduction:- Construction of the accounting equation is satisfied after taking into consideration...
Q: Ben and Jerry formed a partnership several years ago. They share profits and losses equally and the ...
A: A partnership firm refers to when two or more persons come together to form a partnership to carry o...
Q: Tonelife Music sells musical instruments. The following data relates to Tonelifets inventory of guit...
A: The question is based on the concept of Financial Accounting.
Q: The operations vice president of Security Home Bank has been interested in investigating the efficie...
A: Activity-based costing is a method of allocation of indirect costs between/among products or service...
Q: Moore Industries manufactures exercise equipment. Recently the vice president of operations of the c...
A: The question is based on the concept of Financial Management. The Selling price or the fair of the b...
Q: Kingbird publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $22 pe...
A: Journal entries are used to keep records of financial transactions. To generate a journal entry, you...
Q: ournalise the following transactions and post them into Ledger: 2006 September 1 -Started busine...
A: JOURNAL ENTRIES SL Date Particulars Dr. Cr. 01-Sep Cash 50000 To,...
Q: What type of fund is unique only to a local government unit? Select the correct response: General Fu...
A: Funds refer to the supply and maintenance of finance for some particular purpose, so when a term is ...
Q: A company reports the following beginning inventory and two purchases for the month of January. On J...
A: Last In, First Out (LIFO): Inventory is counted using the last in, first out (LIFO) approach. The ex...
Q: PB4-3 (Algo) Determining Accounting Equation Effects of Adjusting Journal Entries [LO 4-2, LO 4-6] C...
A: Assets are resources that are controlled which results from prior transactions that are expected to ...
Q: Kent contributed $50,000 in exchange for a 40% interest in a partnership at the beginning of the yea...
A: Partner's capital is acknowledged as the resources invested by the partners into the partnership fir...
Sutton Company purchased 10% of the outstanding stock of Roberts Company on January 1, 2012. Roberts reported net income of $155,000 and declared dividends of $40,000 during 2012. How would these events be reported by Sutton using the cost method?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On January 1, 2020 Rosen Company purchased 35,000 which is 15% of the total common stock owned by Polo Corporation for 770,000. During 2020 Polo Corporation reported a net profit of 400,000 and declared a dividend of 100,000. Requested: (a) If Rosen Company records its investment using the cost method (there is no significant effect), prepare the journal entry that Rosen Company should record in relation to the investment made. (b) Suppose that Rosen Company has significant influence in Polo Corporation so that Rosen Company must record its investment using the equity method, prepare the journal entry that Rosen company must present in relation to the value of its investment, and present the calculation of the investment balance as of December 31, 2020During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250On January 1, 2017, Rama Corporation paid $150,000 for 30% of Samer Company's stock. Rama reported a net income of $25,000 in 2017, paid out $10,000 in dividends, and the annual amortization was $1,000 due to the undervaluation of the buildings (F.V> B.V). Rama uses the equity method. What is the balance of investment in Samer Company that will be reported on December 31, 2017? a. $157,500 O b. $153,500 O c. $150,000 d. $153,400
- (Income Statement, Irregular Items) Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows.1. In 2017, Wade Corp. sold equipment for $40,000. The machine had originally cost $80,000 and had accumulated depreciation of $30,000. The gain or loss is considered non-recurring.2. The company discontinued operations of one of its subsidiaries during the current year at a loss of $190,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. The loss from operations of the discontinued subsidiary was $90,000 before taxes; the loss from disposal of the subsidiary was $100,000 before taxes.3. An internal audit discovered that amortization of intangible assets was understated by $35,000 (net of tax) in a prior period. The amount was charged against retained earnings.4. The company recorded a…Porter Corporation purchased 80% of the common stock of Salem Company for $850,000 on January 1, 2013. During the next three years, Salem had the following income and Dividends paid: Year Income Dividends 2013 $100,000 $25,000 2014 $110,000 $35,000 2015 $170,000 $60,000 Prepare the journal entries made under both methods and then compute the ending balance in the "investment" account under both methods.Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue $310,000 Cost of goods sold 140,000 Selling and administrative expenses 50,000 Gain on sale of plant assets 30,000 Unrealized gain on non-trading equity securities 10,000 Interest expense 6,000 Loss on discontinued operations 12,000 Allocation to non-controlling interest 40,000 Dividends declared and paid 5,000 InstructionsCompute the following: (a) income from operations, (b) net income, (c) net income attributable to Viel Company controllingshareholders, (d) comprehensive income, and (e) retained earnings balance at December 31, 2017. (Ignore income taxes.)
- 1.) Land Services, Inc. owns 30% of voting stock of World Investments, Inc. During the year 2018, World Investments, Inc. earned profits of $320,000. Under the equity method, which of the following journal entries will Land Services record? 2.) Shelcal, Inc. provides the following data for the year 2019: Net Sales Revenue 397,630 Cost of Goods Sold 255,000 The cost of goods sold as a percentage of net sales revenue is ________. (Round your answer to two decimal places.)help meDuring 2021 Carla Vista Company purchased 10700 shares of Kingbird Inc. for $37 per share. During the year Carla Vista Company sold 2850 shares of Kingbird, Inc. for $42 per share. At December 31, 2021 the market price of Kingbird, Inc.’s stock was $35 per share. What is the total amount of gain/(loss) that Carla Vista Company will report in its income statement for the year ended December 31, 2021 related to its investment in Kingbird, Inc. stock? $-7150 $-1450 $-21400 $14250
- Pam Company paid $440,000 for an 80 percent interest in Sun Company on July 1, 2016, when Sun had total equity of $220,000. Sun Company reported earnings of $20,000 for 2016 and declared dividends of $32,000 on November 1, 2016. RequiredGive the entries to record these facts on the books of Pam Company: Assuming that Pam Company uses the cost method of accounting for its subsidiaries.Assuming that Pam Company uses the equity method of accounting for its subsidiaries. (Any difference between investment cost and book value acquired is to be assigned to equipment and amortized over a 10-year period.)Black Bulls Company reported a Retained Earnings balance of P150,000 on December 31, 2014. The following occurred during 2015: Net income was P85,000 Dividends declared and paid was P60,000 An error on the 2013 depreciation expense revealed understatement of P25,000. Tax rate is 25%. How much should be presented as the correct beginning balance of the Retained Earnings account for 2022? How much should be presented as the ending balance of the Retained Earnings account for 2022?The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ Corporation