Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet at the acquisition date?
Q: Blossom Company has $ 1,000,000 in assets and $1,000,000 in stockholders' equity, with 35,000 shares…
A: Earnings per share is calculated by dividing net income of company by weighted average number of…
Q: Write a research paper explaining how the T Account process works
A: T accounts are visual representations of individual accounts that looks like a "T" and is used to…
Q: Im unsure what goes where and struggling The following information is available for Tomlin Company…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: What are the two most common formats requested by business analysts? Multiple Choice Numeric and…
A: A business analyst is frequently considered as the connection between the business and IT divisions.…
Q: Chuck, a single taxpayer, earns $79,800 in taxable income and $15,900 in interest from an investment…
A: Answer:- Marginal tax rate meaning:- The marginal tax rate is the amount of tax a taxpayer pay for…
Q: Problem 3-63 (Algo) CVP, Operating Leverage, and Margin of Safety (LO 3-1, 2, 4) Maryland…
A: As per the Honor code of Bartleby we are bound to give the answer of the first three sub parts only,…
Q: Theo Roth has adjusted gross income of $82,000. During the year, Theo decided he needed a larger h…
A: Adjusted gross income is the income which is earned by the person who is the taxpayer on which he or…
Q: No. Account Titles and Explanation 3 (1) Accounts Receivable Sales Revenue (To record sale of jobs)…
A: Manufacturing overhead also referred to as Production overhead are the costs that include all the…
Q: State whether (and if so, at what value) the two items should be recognised in the consolidated…
A: In the consolidated Statement of Financial Position of Diamond Ltd on the acquisition of Dilemma,…
Q: Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of…
A: Petty cash: Petty cash fund is established to manage the payment for small business expenditures…
Q: De La Riva receives 18½ cents for every unit produced. De La Riva produces 375 units in an 8-hour…
A: Daily wages are the amount of money a person earns for one day of work. The number of hours worked…
Q: Based on the following data, determine the total assets, total liabilities, net worth, total cash…
A: Answer:- Balance sheet meaning:- Balance sheet is one of the most important financial statements,…
Q: Irvine Corporation's fiscal year-end is December 31, 2024. The following is a partial listing of…
A: Retained earnings are like a company's savings account. When a business earns a profit, it can…
Q: The rent income account in the ledger of RT Stores reflected a total of R133 000 on 28 February…
A: In this problem, we are asked to compute the amount of net income to be reflected in the statement…
Q: Listed below are several transactions that took place during the second and third years of…
A: Financial Statement comprises an Income Statement, Balance Sheet, cash flow statement and Notes to…
Q: The following are partially completed T-accounts for Marigold. The accountant needs help filling in…
A: Cost of goods manufactured :— It is the total cost of finished goods transferred from work in…
Q: es The records at the end of January 2012 for Captain Company showed the following for a particular…
A: INVENTORY TURNOVER RATIOInventory Turnover Ratio is the Ratio between Cost of Goods Sold & the…
Q: Google's search keyword advertising uses a pay-per-click (PPC) pricing model. Calculate the…
A: ROI (Return on Investment) is the amount of profit margin on the investment made in a project. Ad…
Q: Kohler Corporation reports the following components of stockholders' equity at December 31 of the…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: Holborn Appliance Shop is a small business located on the coast. It specializes in appliance repair…
A: The income statement offers important information about a company's overall profitability, capacity…
Q: Parts World (PW) designs and produces automotive parts. In 2017, actual manufacturing overhead is…
A: The manufacturing overhead is the rate of which is used by the company in order to distribute the…
Q: Use the inventory table and the gross profit inventory method to estimate the ending inventory and…
A: The gross profit method uses a company's gross profit or gross margin percentage to estimate the…
Q: 15. In the fourth quarter of Year 1, Beech Corporation produced three products (related to different…
A: As per Ifrs inventory is valued at cost or net realisable value which ever is lower.Net realisable…
Q: Construct an appropriate spreadsheet model to find the profit based on a given production level and…
A: A break-even units range is the range of units in which there can be at any point of units the…
Q: Unit manufacturing costs Variable materials. Variable labor Variable overhead Fixed overhead Total…
A: Lets understand the basics.When management have options to increase production by decreasing price…
Q: June 1 Introduced Capital of $95,000 June 2 Purchased goods on Credit from Smith & Co. for $8,000…
A: In this problem, we are asked to prepare and record the given transactions in Accounting equation.
Q: C. Reither Co. reports the following information for 2025: sales revenue $700,000 cost of goodssold…
A: Stockholder's equity is a section on the balance sheet of a company that reports the total amount…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: Income statement :— It is one of the financial statements that shows the profitability, total…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…
Q: The following information concerns production in the Baking Department for August. All direct…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: The following data apply to Pro Beauty Supply Incorporated for May. Year 2 1. Balance per the bank…
A: A bank reconciliation statement is a financial document that reconciles the bank statement balance…
Q: During its first year of operations, Col Kaye Corporation had the following transactions pertaining…
A: Issuance of Common Stock -When the company issues shares to the ordinary shareholders, the amounts…
Q: Listed below are several transactions that took place during the second and third years of…
A: Financial Statement comprises of Income Statement, Balance Sheet, cash flow statement and Notes to…
Q: Daniel Company uses a periodic inventory system. Data for 2015: beginning merchandise inventory…
A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…
Q: a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months' rent: December 2019;…
A: Financial statement means statement which shows the financial position as on date and financial…
Q: Exercise 3-6 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement…
A: Cost of goods manufactured -The cost of Goods Manufactured is the total cost incurred for…
Q: on needs to save some money to buy her first car after she graduates. At the beginning of each…
A: A key idea in finance and investment research is the future value, which is used to assess the…
Q: IAS 17 paragraph 13 states that “Lease classification is made at the inception of the lease…..”…
A: The lease is referred to as the contract which outlines the terms as per which one party agrees to…
Q: 1. Identifying alternative accounting treatments: A new restaurant is opening in one month, and the…
A: Accounting Treatment refers to the specific method, approach, or set of rules and procedures applied…
Q: E6-13 Determining the Effects of Credit Sales, Sales Discounts, and Sales Returns and Allowances on…
A: The net sales are calculated as sales revenue less sales returns and allowance.The gross profit is…
Q: Fuzzy Monkey Technologies, Incorporated purchased as a short-term investment $210 million of 6%…
A: The Investment Available for Sale (AFS) under the fair value option is recorded at the fair value of…
Q: Problem 17-44 (Algo) Sales Mix and Quantity Variances (LO 17-4) Lake Cellars produces and sells…
A: Variance analysis: it analyzes the differences between the cost actually incurred and that of the…
Q: Cajun Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10…
A: Answer:- A business may distribute both common and preferred shares to its shareholders. Preferred…
Q: And the following line items in its Cash Flow and Balance Sheets Cash Flow Statement Cash Flow…
A: Free cash flow is determined by subtracting capital expenditure from cash flow from operations.
Q: Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z.…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week.…
A: " Gross pay" and" net pay" are terms generally used in the environment of employment and income.…
Q: ← Quality Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to…
A: Activity rate is used to allocate overhead to respective production. Activity based costing use…
Q: The increases to Work in Process-Roasting Department for Boston Coffee Company for March 2016 as…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: When is the adjusting of cost of goods sold for the underallocation or overallocation of…
A: To reconcile the difference between actual and allocated manufacturing overhead costs, the…
Q: A firm has a higher asset turnover ratio than the industry average, which implies the firm has…
A: Ratio analysis is quantitive method of getting analysis of financial position of an organisation.…
On January 1, 2024, Flower Company purchased 100% of the common stock of Cornell Company for $380,000 cash. Fair values differed from book values as follows:
| Fair value | |
| Inventory | $45,000 |
| Land | 50,000 |
| Buildings | 200,000 |
| Bonds Payable | 95,000 |
The trial balances of the companies at the acquisition date are as follows:
|
|
|
|
|
|
Parent |
Sub. |
|
Account Titles |
Company |
Company |
|
Assets: |
|
|
|
Inventory |
150,000 |
30,000 |
|
Cash |
639,000 |
165,000 |
|
Investment in Sub. Company |
380,000 |
|
|
Land |
20,000 |
30,000 |
|
Buildings, net |
250,000 |
180,000 |
|
|
40,000 |
|
|
Liabilities and Equity: |
|
|
|
Current Liabilities |
191,000 |
65,000 |
|
Bonds Payable |
500,000 |
100,000 |
|
Common Stock |
100,000 |
50,000 |
|
Other Paid-in Capital |
150,000 |
70,000 |
|
Retained Earnings |
538,000 |
120,000 |
Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet at the acquisition date?
Question 5Select one:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- On January 1, 2025, Caramel Company purchased 100% of the common stock of Harlor Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Caramel Harlor Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 The amount reported for Cash on the consolidated balance sheet at the acquisition date isOn January 1, 2025, Henderson Company purchased 100% of the common stock of Caramel Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Henderson Caramel Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet at the acquisition date? Question 9Answer a. Debit to Common Stock for $30,000 b. Credit to Goodwill for $200,000 c. Credit to Investment in Sub for $590,000 d. Debit to Land for…On January 1, 2025, Henderson Company purchased 100% of the common stock of Caramel Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Henderson Caramel Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 The amount reported for Cash on the consolidated balance sheet at the acquisition date is Question Answer a. $125,000 b. $650,000 c. $65,000 d. $715,000
- On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followir statement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Assets Equity and Liabilities Share capital- Plant assets (ne t) $1,350,000 $1,150,000 ordinary 235,000 Retained earnings Inventory Receivables 1,070,000 587.000 800,000 Accounts payable Cash 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2.550,000. The recoverable…On January 1, 2022, Pacer Corporation (Pacer) acquired 80% of Sprint Ltd. (Sprint) Corp. for $500,000. Please uses the cost method to account for its investment. On January 1, 2022, Sprint's retained earnings and common shares were $350,000 and $110,000, respectively. Sprint's book values did not differ materially from its fair values on the date of acquisition with the following exceptions: • Inventory had a fair value that was $20,000 higher than its book value. This inventory was sold to outsiders during 2022. • A patent (which had not previously been accounted for) was identified on the acquisition date with an estimated fair value of $15,000. The patent had an estimated useful life of 3 years. The financial statements of Pacer and Sprint for the year ended December 31, 2023 are shown below: Income Statements Pacer Corporation Sprint Ltd. Sales $500,000 $300,000 Other revenues 300,000 120,000 Less: expenses Cost of goods sold 400,000 240,000 Depreciation/amortization…Cayman Inc. bought 25% of Maya Company on January 1, 2022 for $800,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $2,100,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2022$ 30,000 $ 45,000 $ 8,400 2023$ 48,000 $ 80,000 $ 20,000 Maya reported net income of $100,000 in 2022 and $120,000 in 2023 while paying $40,000 in dividends each year. What is equity in Maya income that should be recognized by Cayman in 2023? O $25,000 Ob $28,700 O $2,000 Od $31,300 e$30,000
- On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P 800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000 On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000. What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices Cannot be determined 66,000 56,250 68,000 PreviousNextOn January 1, 2023, Tamarisk Company issued 1,450 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Sheffield Company in a purchase transaction. Registration costs amounted to $2,500, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Cash Accounts receivable (net) Inventory Plant and equipment (net) Land Total assets Accounts payable Notes payable Common stock, $20 par value Other contributed capital Retained earnings Total equities Tamarisk Company $83,000 103,000 56,000 95,000 23,500 $360,500 $63,000 89,500 100,000 60,000 48,000 $360,500 Sheffield Company $12,600 18,000 25,000 46,500 22,000 $124,100 $19,500 30,000 40,000 27,500 7,100 $124,100 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.
- Anthem Co. acquired 60% of the outstanding shares of Bethel Co. onJanuary 2, 2021. Anthem Co. acquired it at book value which is the sameas its fair value at the date of acquisition. Income Statement of AnthemCo. and Bethel Co. for 2022 are as follows:Anthem Co.Net Sales P875,000Cost of Sales 525,000Gross Profit 350,000Operating Expenses 105,000Operating Income 245,000Dividend Income 56,000Net Income P301,000Bethel Co. made sales to Anthem Co. of P112,000 in 2021 andP168,000 in 2022.Anthem Co. reported inventory on December 31, 2021 amounting toP70,000 of which 20% comes from Bethel Co. and inventory onDecember 31, 2022 amounting to P84,000 of which 30% comes fromBethel Co.Anthem Co. made sales to Bethel Co. of P273,000 in 2021 andP338,000 in 2022.Bethel reported inventory coming from Anthem Co. as of December31, 2021 and December 31, 2022 in the amount of P54,600 andP152,100, respectively.Anthem Co. uses 30% mark-up on cost and Bethel Co. uses 25%mark-up on cost for their selling…On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. How much is the gain on acquisition?On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. Theconsideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shareswith a market price of P45 per share.The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for thefollowing:• Merchandise inventory’s fair value is lower than the book balance by 150,000.• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated byP50,000.• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.The following events happened to Luna Corp.• Equipment-A was sold in June 30, 2023 for P320,000.• 60% of merchandise inventory were sold in 2022.• There is no movement as to the ordinary shares of Luna Corp during the year.The unadjusted trial balance as of December 31, 2022 were as follows:Lucas Company Luna CorpCash 2,240,000 1,800,000Trade Receivables 1,000,000 960,000Merchandise Inventory 2,320,000…
