Business combination: Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations. Consolidated financial statements: The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information. : Impact of the dividend on the equity of the subsidiary and the investment account.

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Answer 1

Question

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

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At the end of April, Nina Company had completed Jobs 50 and 51. Job 50 is for 23,040 units, and Job 51 is for 26,000 units. The following data relate to these two jobs: On April 6, Nina Company purchased on account 60,000 units of raw materials at $12 per unit. On April 21, raw materials were requisitioned for production as follows: 25,000 units for Job 50 at $10 per unit and 27,000 units for Job 51 at $12 per unit. During April, Nina Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. The total direct labor was incurred at a rate of $20.00 per direct labor hour for Job 50 and $22.00 per direct labor hour for Job 51. Nina Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000. Determine the balance on the account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded on job cost sheets for Jobs 50 and 51 at the end of…

Answer 2

Question

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

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Answer 3

Question

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

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Answer 4

Question

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

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Answer 5

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

Answer 6

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.

Answer 7

Chapter 8, Problem 1UTI

To determine

Business combination:

Business combination refers tothe combining of one or more business organizations in a single entity. The business combination leads to the formation of combined financial statements. After business combination, the entities having separate control merges into one having control over all the assets and liabilities. Merging and acquisition are types of business combinations.

Consolidated financial statements:

The consolidated financial statements refer to the combined financial statements of the entities which are prepared at the year-end. The consolidated financial statements are prepared when one organization is either acquired by the other entity or two organizations merged to form the new entity.The consolidated financial statements serve the purpose of both the entities about financial information.

:

Impact of the dividend on the equity of the subsidiary and the investment account.

Answer 8

Expert Solution & Answer

Explanation of Solution

Date	Accounts Title and Explanation	Post Ref.	Debit ($)	Credit ($)
	Retained earnings		500,000
	Common stock			10,000
	Paid in capital in excess of par			490,000
	(being the stock dividend recorded)

Table: (1)

The adjustment entry for the dividend is not required in the books of the subsidiary company as this transaction will not impact the equity of the subsidiary company. The parent will not make adjustment for the given transaction in its books of accounts. The equity of the subsidiary will not change in the consolidated statements. There is no requirement for any adjustment entry in the books of the parent company as there is no change in the total equity of the subsidiary when the investment in Company S is eliminated from consolidated financial statements. The revised holding is eliminated from accounts of parent company.