ecorded in the applicable asset and liability accounts of the parent
Q: The following transactions are for Sheridan Company. On December 3, Sheridan Company sold $613,400…
A: Net cash received = Net accounts receivables - Discount allowed where, Discount allowed = Net…
Q: The following balance sheet is for X Company: Balance Sheet January 1, 2021 Assets Equities Cash…
A: Solution: Total assets = Total equities We will compute total assets on dec 31, 2021, same will be…
Q: ABC Company operates a production process to convert a single material into three separate items,…
A: The question is related to Joint Products. The physical measure approach is based on the assumption…
Q: Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston…
A: Direct labor Hours- The direct labor hours are the amount of direct labor hours required to…
Q: The Sisters Corporation has 1000 shares of its $50 par, 6% cumulative preferred stock, 1,000 shares…
A: Cumulative preference shares: These are the preference shares those have an option to receive the…
Q: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct…
A: Material price variance = (Standard price - Actual price)*Actual quantity purchased Material…
Q: The statements of comprehensive income, statement of financial position and additional information…
A: The cash flow statement shows the cash inflow and cash outflow of the company by the operating,…
Q: 8. An entity, Dominic Limited has profit after tax of $15 million for the year ended December 31,…
A:
Q: Assume that Barb City acquires $2,000 of inventory on May 1, 2022, having held no inventory…
A: Inventory is a type of asset that is sold in company operations. Inventory may not be available for…
Q: lizabeth, Arden and Hugo are partners sharing profits in the ratio 3:2:1, respectively. Capital…
A: Solution: When a partner is retired from partnership, amount paid in excess of his balance to…
Q: Requirements: a. Prepare the journal entries for both the Home Office and Branch books based on the…
A: Branch Accounting is a system of accounting where separate accounts are prepared for each branch.…
Q: ABC Company operates a number of branches. On December 31, 2022, its Mindanao branch showed a Home…
A: The investment account is the account that shows the amount of the investment-related to a…
Q: (The following information applies to the questions displayed below.] Lewis and Laurie are married…
A: Lewis and Laurie are married and jointly own home valued = at $265000 Recently paid off the mortgage…
Q: The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore…
A: For the use of natural resources, depletion expenses is charged (against profits). It is most common…
Q: On January 1, Aya, Becca, Celia, and Divina, formed Fab Trading, a local partnership, with capital…
A: Answer:- Definition of partnership:- A partnership can be defined as the agreement of two or more…
Q: Babes and Honey, on January 1, 2022, have respective capital balances of P300,000 and P500,000.…
A: Honey's share will be aggregate of: Honey's Annual salary. Honey's interest on capital. Honey's…
Q: Pure Compe
A: The taxable total income of the individual taxpayer includes the income earned by the respective…
Q: ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the…
A: In this question, we are required to analyse the effect of the following transaction in Assets,…
Q: Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the…
A: Statement of cash flow (CFS) as per IAS 7 is a format used to reconcile the changes made in the…
Q: Sheffield Corp. had the following information in its financial statements for the year ended 2020…
A: Payout Ratio - This ratio shows the amount of dividend paid out from net income.
Q: Which of th
A: The forecast may also be done about the cash balance in hand the organization forecasts to keep and…
Q: On March 15, Summit Hawk declares a quarterly cash dividend of $0.035 per share payable on April 13…
A: Dividend payable = shares outstanding × Dividend per share
Q: Questions 4 and 5 refer to the following information The following balance sheet is for X Company:…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Explain why depreciation and interest should not be included as costs in a discounted cash flow…
A: The company makes several investments and an evaluation of investment is necessary. Therefore, the…
Q: The GMA corporation shows the following data related to an item of Inventory Inventory, January 1…
A: UNDER FIFO (FISRT IN , FIRST OUT) METHOD THE ASSETS PURCHASED OR ACQUIRED FIRST ARE DISPOSED OF…
Q: Perry's Carpentry Comparative Income Statement For the years ended December 31, 2016, 2015 Increase…
A: Comparative statement means where first increase or decrease is calculated between two year and then…
Q: 7.On its balance sheet, a company undergoing reorganization should Select one: a.report its assets…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Callous Company was organized on January 1 , 2012 with 100,000 shares authorized with P100 par…
A: Share premium: It implies to the excess amount received at the time of issuing shares over and above…
Q: Dearth Company issued 100,000 ordinary shares. Of these, 5,000 shares were held as treasury on…
A: Ordinary shares are the shares issued to ordinary shareholders by the company. Whereas, treasury…
Q: Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible…
A: The flexible budget is prepared on the basis of standard rates and actual production data. The…
Q: Z Corp. incurred the following costs in 2001 (its first year of operations) based on production of…
A: The income statement card can be prepared using various methods as variable costing and absorption…
Q: The declaration, record, and payment dates in connection with a cash dividend of $31,100 on a…
A: A CASH DIVIDEND IS THE DISTRIBUTION OF FUNDS OR MONEY PAID TO STOCKHOLDERS GENERALLY AS PART OF THE…
Q: In the ABC partnership (to which D seeks admittance), the capital balances of A, B, and C, who share…
A: Partnership is an agreement between two or more partners where partners are agreed to work together…
Q: general journal adjusting entry on December 31, 2021
A: Depreciation refers to the reduction in the value of the fixed asset recorded in the books in a…
Q: Robert and John are married and have 5 dependent children and earn a gross biweekly salary of…
A: Income tax refund arises when there is a mismatch between the tax amount paid and and the actual…
Q: Boston Exemcutive, Inc., produces executive limousines and currently manufactures the mini-bar inset…
A: Variable cost is the cost that changes with the change in the output level. Variable cost remains…
Q: QUESTION 9 If you invest $5100 per year in a stock that grows at rate of 6% per year, how much will…
A: Time value of money means the worth of money today is more than the value of money in the future.
Q: On December 25, 2019, Ms. Smith gives Charity Z 1,000 shares of stock that she bought originally for…
A: In the given question, Charity Z has received shares as donation in the course of its business.…
Q: Africa Traders is a registered VAT vendor and uses the periodic inventory system. Africa Traders…
A: The standard VAT rate of Africa is 15% for trade. Therefore, the value of VAT output to be disclosed…
Q: On January 1, 2021, Bob purchased a 50 percent interest in ABC Partnership (ABC) from Tim by paying…
A: Partnership refers to a business entity incorporated by two or more partners in order to share the…
Q: An analysis of Puge Co.'s unadjusted prepaid expense account at December 31, 20x3, revealed the…
A: Prepaid Expenses: It is possible to pay for an expenditure in one accounting period, but the…
Q: Problem 19-1 (ACP) current year: 5,000,000 1,600,000 600,000 Income before tax Income tax Loss from…
A: Earnings per share represent the earnings of the company held in hands of each shareholder of the…
Q: What is the total interest that must be paid by the maker if the term of credit is 5% of Php 20,000…
A: Solution: Note amount = Php 20,000 Interest rate = 5% Period = 3 months
Q: On January 1, 2021, Ka Leody Inc. entered into a long-term construction contract with fixed contract…
A:
Q: Ahngram Corp. has 1,000 defective units of a product that cost $2.20 per unit in direct costs and…
A: Incremental net income (loss) from reworking the units = (Additional revenue per unit - rework costs…
Q: On September 3, 2016, Ivory Company acquired an apartment building for $1,500,000 (with $300,000…
A: Straight line method is also called fixed installment method, original value method, It is one of…
Q: discuss some of the issues that some U.S. accountants have with IFRS. There are some fundamental…
A: IFRS stands for International Financial Reporting Standards. GAAP stands for Generally Accepted…
Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $250,000, 10%, 10-year…
A: A bond is a liability on which a specific percentage of interest has to be paid over the maturity of…
Q: . How much is the maturity value that must be paid to the creditor if the credit term is 5% of Php…
A: The maturity value will be aggregate of amount borrowed and amount of Interest.
Q: The Lessor is Supreme Asset Management Company (SAMC) and the lessee is Bogue Distributors Limited…
A: Financial lease - Lease Accounting
Step by step
Solved in 2 steps
- At the date of purchase, business combination resulting in a parent-subsidiary relationship, the difference between current fair values and carrying amounts of the subsidiary’s net asset is: A. Recorded in the applicable asset and liability accounts of the parent company B. Reflected in a consolidation elimination C. Recorded in the applicable asset and liability accounts of the subsidiary D. Accounted for in some other manner.If a revaluation of the subsidiary’s assets is performed on consolidation, the subsidiary’s assets are carried into the consolidated statement of financial position at: Select one: a. Net present value. b. Historical cost. c. Fair value. d. Current replacement cost.At acquisition date, the net assets of the acquired subsidiary are included in the consolidated financial statements at their acquisition date fair value. However, most of the parent's assets and liabilities are measured on a historical cost basis. Is this consistent?
- At acquisition date, the net assets of the acquired subsidiary are included in the consolidated financial statements at their acquisition date fair value. However, most of the parent’s assets and liabilities are measured on an historical cost basis. Is this consistent? Explain.at acquisition date net assets of a subsidiary company are included in the consolidated financial statement at their acquisition date fair value.however most of the parents assests and liabilities are measured on historical cost.explainIn a share acquisition business combination resulting in a parent- subsidiary relationship, the difference between the current fair values and book values of the subsidiary’s identifiable net assets on acquisition date are: Disregarded Entered in the accounting records of the subsidiary Provided in a consolidated statement worksheet elimination. Account for in appropriately titled ledger accounts in the parent company’s accounting records
- Any inter-company gain on a downstream sale of fixed assets should be recognized in consolidated net income: I. in the year of the downstream sale.II. over the period of time the subsidiary uses the asset.III. in the year the subsidiary sells the assets to an unrelated party. Group of answer choices I. II. III. I and IIThe consolidated balance of fixed assets will be affected by working paper entriesinvolving all of the following,except: a.Excess of fixed asset FV over BV of the parent at the date of acquisitionb.Amortization of the excess of fixed asset FV over BV of the subsidiary at the date ofacquisitionc.Unrealized gain or loss on intercompany sale of fixed assetd.Realized gain or loss on intercompany sale of fixed assetA business combination resulting to a goodwill is accounted using acquisition method. In the consolidated balance sheet at the date of acquisition, which of the following statement about retained earnings (RE) is TRUE? Group of answer choices RE is equal to the sum of the RE of the acquirer and acquire. RE is equal to RE of the acquirer plus unadjusted net income of the acquire. RE is equal to RE of the acquirer plus adjusted income of subsidiary net of minority interest in subsidiary’s net income. RE is equal to RE of the acquirer only.
- Choose the letter of the correct answer: 1. What amount of allocated excess/purchase differential amortization is recognized in the consolidated financial statements subsequent to the subsidiary’s acquisition? A. The noncontrolling interest percentage ownership in the subsidiary B. 100 percent of the purchase differential amortization C. Allocated excess/purchase differentials are not amortized D. The parent percentage ownership in the subsidiary 2. What amount of allocated excess/purchase differential amortization is recognized in the consolidated financial statements subsequent to the subsidiary’s acquisition? A. Allocated excess/purchase differentials are not amortized B. The parent percentage ownership in the subsidiary C. The noncontrolling interest percentage ownership in the subsidiary D. 100 percent of the purchase differential amortizationDescribe the difference between the economic entity concept and the parent company concept approaches to the reporting of subsidiary assetsand liabilities in the consolidated financial statements on the date of the acquisition.In a business combination - stock acquisition, difference between current fair values and book values of subsidiary’s identifiable assets and liabilities on acquisition date is:
