On July 1, 2021, ABC Co. acquired most of the outstanding shares of XYZ Co. for cash. The incompleteWorking paper elimination entries on that date for the consolidated financial position are as follows:E1:Shareholder's Equity - XYZ Dr. 2,437,500Investment in XYZ - Cr. 1,584,375Non-controlling Interest - Cr. 853,125E2:Inventories - Dr. 62,500Equipment - Dr. 312,500Patent - Dr. 61,250Goodwill - Dr. ?????Investment in XYZ - Cr. 468,750Non-controlling Interest - Cr. ?????Included in the purchase price is a control premium of 68,750.Assuming NCI is measured at Fair Value in the amount of P1,500,000, what is the goodwill to bereported in the consolidated financial position at the date of acquisition?

Goodwill is an intangible asset which helps a firm earn more than what it’s competitor’s are…

Answered: 1, 2021, ABC Co. acquired most of the…

1, 2021, ABC Co. acquired most of the outstar a paper elimination entries on that date for the plder's Equity - XYZ Dr. 2,437,500 ent in XYZ - Cr. 1,584,375 ntrolling Interest - Cr. 853,125

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In 2019, Edward Company purchased equity securities as a trading investment. For the year ended December 31, 2019, the entity recognized an unrealized holding loss of P230,000. There were no security transactions during 2020. Pertinent information on December 31, 2020 is as follows: Security Cost Market Value A 2,450,000 2,300,000 B 1,800,000 1,820,000 4,250,000 4,120,000 In the 2020 income statement, what amount should be reported as unrealized holding gain or loss?
TOPICS: INVESTMENTS AND DERIVATIVES
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized HoldingGain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?
At what amount should the revaluation surplus be reported on December 31, 2022 in the statement of changes in equity?
Carla Vista Company acquires 78 Dodd's 11%, 5 year. $1000 bonds on January 1, 2021 for $78000. The journal entry to record this investment includes a debit to O Stock Investments for $78000. O Debt Investments for $78000. O Cash for $78000. O Debt Investments for $86580.
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Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Unrealized Holding Gain (Loss) Cost Fair Value Short term: Blair, Inc. ANC Corporation $ 484,000 452,000 $ 403,000 484,000 $(81,000) 32,000 Totals $ 936,000 $ 887,000 $(49,000) Long term: Drake Corporation $ 484,000 718,000 $ 562,000 $ 78,000 (56,000) $ 22,000 Aaron Industries 662,000 Totals $1,202,000 $1,224,000 Required: 1. Prepare appropriate adjusting entries at December 31, 2021. 2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What amount would be reported in the income statement at December 31, 2021, as a result of…
Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, 2024. Assume Tanner-UNF management is holding the bonds in a trading portfolio. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $210 million. Required: 1. to 3. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, interest on December 31, 2024, at the effective (market) rate and the fair value adjustment at December 31. 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to sell the investment on January 2, 2025, for $190 million. Prepare the journal entry to record the sale. Comple this question by entering your wers in the tabs below. Req 1 to 3 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to…
The following investment portfolio of equity securities (all acquired during 2021) accounted for as fair value through other comprehensive income are held by GHI Company on December 31, 2021: Investment Acquisition Cost P3,300,000 HJK, Inc. shares (1,100 shares) Fair value, 12/31/21 P3,100/share 9/share 225/share LMN Co. shares (35,000 shares) OPQ Corp. shares (12,000 shares) 350,000 2,400,000 The following transactions occurred during 2022: • A 20% stock dividend was declared and issued on the HJK, Inc. shares, after which the company sold 330 shares at its fair value of P2,700/share. Additional 5,000 shares of LMN Co. were purchased by the company during the year at fair value of P9.50/share, excluding P0.50/share transaction costs. LMN Co. then declared and paid a P2/share cash dividend. ● A 2-for-3 split was declared by OPQ Corp. to reduce its number of shares. OPQ Corp. declared and paid a P3/share cash dividend after the split. The fair value of the equity securities at year-end…
Myrnam Co. has the following investments held for trading on December 31, 2021: Carrying Value 185,000 125,000 230,000 540,000 Fair Value Security Co. M common shares FVTPL Co. N preferred shares FVTPL Co. P common shares Total Category 160,000 140,000 190,000 490,000 FVTOCI Instructions: a. Prepare the adjusting entries required at December 31 to report the above investments at fair value. b. Show the financial statement presentation of the investmehts and holding gains and losses that result from fair value adjustments at December 31, 2021. (Ignore income tax.) c. Assuming that on April 25, 2022, Myrnam sold Co. M common shares for $160,000, Co. N preferred shares for $135,000, and Co P common shares for $200,000, prepare the journal entries required to record these transactions.
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Required 1 Required 2 Cost $ 516,000 468,000 $984,000 View transaction list Fair Value 1 " $ 387,000 516,000 $ 903,000 $ 516,000 702,000 $ 578,000 678,000 $ 1,218,000 $ 1,256,000 Journal entry worksheet Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Unrealized Holding Gain (Loss) $ (129,000) 48,000 $ (81,000) Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a…
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