As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 480,000 shares for $560,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $330,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $593,000 Record the cash dividend of 25 cents per share. Record any necessary year - end adjusting journal entry when the fair value of the shares held are $ 593,000 at year-end.
Q: Dobbs Company issues 7%, two-year bonds, on December 31, 2021, with a par value of $98,000 and…
A: Journal entries : a) The journal entries to record issue of bond is , DATE ACCOUNTS TITLE…
Q: None
A: To calculate Corbett's Alternative Minimum Tax (AMT) exemption under different circumstances, we…
Q: Exercises 1. Newhart Corporation issues 20,000 shares of common stock for a total price of $300,000…
A: Issue of Capital:When a company is in need of capital, it issues shares of stock. Generally, this…
Q: Brown Enterprises enter into a 4 year lease with ABC Leasing Company. The lease qualifies as an…
A: A lease is an arrangement where a lessor agrees to allow a lessee to control the use of the asset…
Q: Which of the following statements is not true about provisions? a. Examples of provisions include…
A: The amount that the business has set aside for anticipated future losses and uncertainties for which…
Q: Accounting for Leases Using Finance and Operating Lease Methods Core Co. leased a piece of…
A: To solve this problem, we need to calculate the present value of the lease payments using the given…
Q: Troy Engines, Limited, manufactures a variety of engines for use in heavy equipmen necessary parts…
A: The relevant cost refers to the cost which is avoidable and differs between the two alternatives and…
Q: None
A: Variance is the difference between budgeted and actual. Manufacturing overhead cost include the…
Q: The following information applies to the questions displayed below.] On December 31, Jarden…
A: Step 1:To prepare the adjusting entry to record bad debts expense at December 31, we need to…
Q: Periodic inventory by three methods; cost of goods sold The units of an item available for sale…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: None
A: The beta value of a stock is a measure of its volatility in comparison to the market as a whole. In…
Q: Delta Company produces a single product. The cost of producing and selling a single unit of this…
A: Step 1: 1) Computation of financial advantage (disadvantage) from Special OrderSelling Price per…
Q: Product E CABCDE Unit Quantity 1,500 1,300 Cost $ 20 25 1,100 5 700 1,100 9 24 Unit Selling Price $…
A: A method used in company accounting to value inventory is known as the lower-of-cost or net…
Q: ⚫The company sells the toys with a 2 year warranty. The company estimates that warranty Expense will…
A: Part 2: Explanation:Step 1: Warranty Expense Calculation: Calculate the warranty expense based on…
Q: Victory Company uses weighted average process costing. The company has two production processes.…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Journalize the following transactions for Waterway Manufacturing. (Credit account titles are…
A: A journal entry is a record of a financial transaction in an accounting system. It's the first step…
Q: None
A: Calculation of initial investment:The initial investment includes the cost of the fixed assets plus…
Q: 11. The three stages of data processing are: A) inputs, outputs, and processing. B) source…
A: Data processing:It is the procedure for compiling and modifying digital data to produce informative…
Q: On October 31, 2024, Crowe Company's general ledger shows a cash account balance of $8,454. The…
A: Step 1: Bank reconciling itemsPer bank statement$13,114Deposits outstanding* 3,310Bank error**…
Q: 1) Transactions for the month of July for Shelly's Bookstore were as follows: Purchases July 1 8…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: None
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: How will his dividends be taxed?
A: Dividends are portions of a company's profits distributed to its shareholders as a return on their…
Q: Nalo Ltd produces chilli sauce which passes through three processes. The information provided below…
A: The objective of the question is to prepare the process account for the month of June and the…
Q: Variance Computations and Explanations Tarptent manufactures camping tents from a lightweight…
A: Variance analysis : Analysis of a difference between planned and actual behavior. After analyzing…
Q: Blossom Inc. signed a 10-year, 4%, $240,000 mortgage payable on November 30, 2023, with a bank to…
A: A mortgage is a kind of loan where the debt is secured by the property. A mortgage is a legal…
Q: None
A: Detailed explanation:straight line depreciation per year = (cost - salvage value) / useful life = (…
Q: hal.0
A: The objective of the question is to create an amortization table for a three-year loan of $500,000…
Q: A company is setting its direct materials and direct labor standards for its leading product. Direct…
A: D.) $7.10.Explanation:To calculate the direct materials cost standard per square foot, we need to…
Q: Cullumber Company reports pretax financial income of $64,000 for 2025. The following items cause…
A: The net income is the income which has been retained by the company when all the income tax expenses…
Q: Calculate Diana's total cost recovery deduction for 2023.
A: The total cost recovery deduction is the amount of depreciation on the asset which has been allowed…
Q: K. Mello Company has three employees-a cons Consultant Regular earnings rate $3,210 per wee Overtime…
A: Gross pay refers to the total earnings made by an employee before making any deductions. The gross…
Q: None
A: Step 1:Computation of the revenue and spending variances:…
Q: Give me correct answer and explanation. Don't upload any image please.j
A: The objective of this question is to determine the number of payments and the time in months it will…
Q: 1. The following summary data are from a performance report for Smudge Company for August, during…
A: In a flexible budget, the actual production/sales activity level is taken into account when…
Q: Cullumber Inc. produces and sells three products. Unit data concerning each product is shown below.…
A: The direct labor cost is calculated as the direct labor hours multiplied by Direct labor rate. The…
Q: Dengar
A:
Q: Blue Company adopted a stock-option plan on November 30, 2024, that provided that 73,800 shares of…
A: Share-based compensationThe compensation or commission provided to the employees in the form of…
Q: Describe the difference between a direct materials efficiency variance and a variable manufacturing…
A: The objective of the question is to understand the difference between a direct materials efficiency…
Q: Grand Corporation reported pretax book income of $672,000. Tax depreciation exceeded book…
A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…
Q: Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon…
A: Depreciable assets are assets used to make income or profit. Depreciable assets have a life of more…
Q: None
A: Let's calculate:Annual Depreciation:Depreciation = (Initial cost - Salvage value) / Expected…
Q: None
A: The schedule of expected cash disbursements is prepared to know the cash payments to be made. The…
Q: None
A: Income Tax Expense:Taxable income in 2019: $470,000Tax rate for 2019: 34%Income Tax Expense =…
Q: The Fitness Studio, Inc.'s, 2021 income statement lists the following income and expenses: EBITDA…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: Under a perpetual inventory system, acquisition of merchandise for resale is debited t O the…
A: The inventory account refers to all kinds of inventories held on hand that is raw materials, work in…
Q: None
A: 1. Numerator (Net Income attributable to common shareholders): - Net Income for the year ended…
Q: Required information [The following information applies to the questions displayed below.] As part…
A: The accumulated depreciation is the depreciation charged on assets till date. The book value of…
Q: Sagar
A: Certainly! Below are the journal entries for the issuance of the bonds and bond interest expense for…
Q: Crane's woodworking business produces two products from its joint process: one main product (sanded…
A: The joint cost incurred when the production process results in two or more products, The joint cost…
Q: The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda…
A: Partnership is the collaboration of two or more persons to run a business so as to share profits. It…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Inc.’s 400,000 shares for $480,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $250,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $505,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Ltd’s 400,000 shares for OMR480,000 at the beginning of the financial year of both companies. On the purchase date, the fair value and the book value of AMC’s net assets were equal. During the year, AMC earned net income of OMR250,000 and distributed cash dividends of OMR0.250 per share. At year-end, the fair value of the shares is OMR505,000. Required: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (Cost Method) 2.Assume significant influence was acquired. Re-enact the appropriate journal entries from the purchase through the end of the year to report the investment balance in the consolidated financial statements of Painters’ Equipment Company. (Equity Method)As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 1. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. 2. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. 3. Record the cash dividend of 20 cents per share. 4. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.
- As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. Record the cash dividend of 20 cents per share. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000.As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 430,000 shares for $510,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $280,000 and distributed cash dividends of 15 cents per share. At year-end, the fair value of the shares is $538,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 Record the purchase of AMC Supplies shares for $510,000 as a long-term investment. Note: Enter debits before credits. Transactions General Journal Debit CreditAs a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000 shares for $590,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $360,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $626,000. Record Painters' Equipment's share of AMC Supplies' $360,000 net income. Record the cash dividend of 30 cents per share. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $626,000 at year-end.
- At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value of Sky Tech's net assets was $75 million. The fair value of Sky Tech's depreciable assets was $15 million in excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $15 million in dividends.The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc. Shuswap contributed equipment with a book value of $900,000 and a fair value of $2,100,000 for a 50% interest in the joint venture. On December 31, Year 8, Okanagan Inc. reported a net income of $612,000. The equipment transferred has an estimated useful life of 20 years. Ignore taxes. Assume the transaction does not have commercial substance because the equipment will be used for the same purpose by Okanagan. Calculate the gain on the contribution of equipment and prepare the journal entries for Shuswap Inc. to record the events on January 1 and December 31, Year 8, including Shuswap's share of profit.At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $20 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: Multiple Choice O $6.0 million. $20 million. $30 million. None of these answer choices are correct.
- On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc. Shuswap contributed equipment with a book value of $900,000 and a fair value of $2,100,000 for a 50% interest in the joint venture. On December 31, Year 8, Okanagan Inc. reported a net income of $612,000. The equipment transferred has an estimated useful life of 20 years. Ignore taxes. Assume the transaction does not have commercial substance because Shuswap Ltd. owned a similar portion of the same type of equipment both before and after the contribution to the joint venture. Calculate the gain on the contribution of equipment and prepare the journal entries for Shuswap Inc. to record the events on January 1 and December 31, Year 8, including Shuswap's share of profit.At the beginning of the current year, Zaijan Company acquired an investment property for 48 million. In the acquisition, Zaijan made a 30% down payment and issued a 5-year non-interest-bearing note fore the remainder. The equal amount of 6,720,000 is payable at the end of each year. The prevailing market rate of interest for similar instrument is 12%. To complete the transaction, Zaijan Company paid transaction costs amounting to 500,000. Round off present value factors to three decimal places. What is the correct cost of the investment property at acquisition date?a. 48,000,000b. 39,125,600c. 38,625,600d. 24,225,600On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $10.0 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $7.5 million. The income from operations of the segment during 2021 was $4.5 million. Pretax income from continuing operations for the year totaled $12.5 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.)