Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 3, Problem 20P
To determine
Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018.
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Gibco Limited has an October 31 year end. On September 30, 2020 Gibco had the following current liabilities listed on its books:
Bank credit line........................................... Â Â Â Â Â $25,300
Accounts payable........................................ Â Â Â Â Â 110,500
CPP, EI and income tax payable.................. Â Â Â Â Â Â Â 19,620
Unearned revenues.................................... Â Â Â Â Â Â Â 22,000
Â
During October 2020 Gibco engaged in the following transactions:
Oct 1Â Â Â Â Â Â Â Â Paid $12,000 on the credit line with their bank
Oct 5 Â Â Â Â Â Â Â Sold goods for $40,000 on which they had previously received a $10,000 deposit. The balance is due in 30 days.
Oct 12 Â Â Â Â Â Bought $26,000 of inventory on credit, terms of 30 days.
Oct 15 Â Â Â Â Â Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30.
Oct 20 Â Â Â Â Â Paid $97,000 owing to a supplier.
Oct 21 Â Â Â Â Â Received $5,000 from a client for work that will be performed in January 2021.
Oct 21      Sold…
Maldanado Company has a balance in its Accounts Payable control account of P10,500 on January 1,2021. The subsidiary ledger contains three acounts: Smith Company, balance P3,000; White Company, balance P2,500 and Marino Company, balance P5,000. During January, the following payable-related transactions occured.
SMITH COMPANY
Purchases: P7,500
Payment: P6,000
Returns: P0
WHITE COMPANY:
Purchases: P5,250
Payment: P2,500
Returns: P1,500
MARINO COMPANY:
Purchases: P6,100
Payment: P6,750
Returns: P0
How much is the general ledger balance of the Accounts Payable as of January 31, 2021?
Included in Witt Company’s liability account balances on December 31 2017 were the following:
6% note payable issued October 1, 2016..................................................500,000
8% note payable issued April 1, 2016, maturing April 1, 2018....................800,000
o The December 31, 2017 financial statements were issued on March 31, 2018.On January 15, 2018, the entire ₱800,000 balance of 8% note was refinanced by issuance of a long-term obligation payable in a lump sum.
o In addition, on March 10, 2018, Witt Company consummated a non cancelable agreement with the lender to refinance the 6%, ₱500,000 note on a long-term basis, on readily determinable terms that have not yet been implemented.
o Both parties are financially capable of honoring the agreement, and there have been no violations of the agreement’s provisions.
In December 31, 2017 statement of financial position, what amount of the notes payable should be classified as current?
Chapter 3 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - Prob. 4QCh. 3 - When a parent company applies the initial value...Ch. 3 - Several years ago, Jenkins Company acquired a...Ch. 3 - Benns adopts the equity method for its 100 percent...Ch. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Paar Corporation bought 100 percent of Kimmel,...Ch. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - If no legal, regulatory, contractual, competitive,...Ch. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - What is Phoenixs consolidated retained earnings...Ch. 3 - On its December 31, 2018, consolidated balance...Ch. 3 - Prob. 13PCh. 3 - Herbert, Inc., acquired all of Rambis Companys...Ch. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Following are selected account balances from...Ch. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 27PCh. 3 - Prob. 28PCh. 3 - Prob. 29PCh. 3 - Prob. 30PCh. 3 - On January 1, 2017, Pinnacle Corporation exchanged...Ch. 3 - Following are selected accounts for Mergaronite...Ch. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Prob. 37PCh. 3 - Prob. 38PCh. 3 - Prob. 39APCh. 3 - Prob. 40APCh. 3 - Prob. 1DYSCh. 3 - FASB ASC AND IASB RESEARCH CASE A vice president...Ch. 3 - Prob. 4DYSCh. 3 - Prob. 5DYS
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