Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2023. As of that date, Abernethy has thefollowing trial balance:ItemsAccounts payableAccounts receivableDebitCredit$ 53,700$ 41,000Additional paid-in capitalBuildings (net) (4-year remaining life)50,000184,000Cash and short-term investments77,250Common stock250,000Equipment (net) (5-year remaining life)Inventory400,000117,500LandLong-term liabilities (mature 12/31/26)Retained earnings, 1/1/23SuppliesTotals107,500173,000417,45016,900$ 944,150 $ 944,150During 2023, Abernethy reported net income of $98,000 while declaring and paying dividends of $12,000. During 2024, Abernreported net income of $128,250 while declaring and paying dividends of $39,000.Assume that Chapman Company acquired Abernethy's common stock by paying $890,450 in cash. All of Abernethy's accountsestimated to have a fair value approximately equal to present book values. Chapman uses the partial equity method to accountInvestment.Required:Prepare the consolidation worksheet entries for December 31, 2023, and December 31, 2024.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.NoDate1December 31, 2023 Common stock-AbernethyAdditional paid-in capital-Abernethy2Retained earningsInvestment in AbernethyAnswer is not complete.AccountsDebitCredit× × × ×3000250,00050,000417,450717,45070,40068,25021,500December 31, 2023 Equity in subsidiary earningsBuildingsGoodwillEquipment

Consolidation:Consolidation means combining the financial items of subsidiary company with the…

Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 41,000 Credit $ 53,700 50,000 184,000 77,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 400,000 117,500 Land Long-term Liabilities (mature 12/31/26) 107,500 Retained earnings, 1/1/23 173,000 417,450 Supplies Totals 16,900 $ 944,150 $ 944,150

Accounts payable Accounts receivable Items Additional paid-in capital Buildings (net) (4-year remaining life) Cash and short-term investments Debit $ 41,000 Credit $ 53,700 50,000 184,000 77,250 Common stock 250,000 Equipment (net) (5-year remaining life) Inventory 400,000 117,500 Land Long-term Liabilities (mature 12/31/26) 107,500 Retained earnings, 1/1/23 173,000 417,450 Supplies Totals 16,900 $ 944,150 $ 944,150

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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Subject:- Account
Financial Balance Sheet cash Account Receivable Inventories Investment Depreciable assets Accumulated depreciation Account Payable Capital Stock Retained Earnings Unappropriated Beginning of Year $41,200 65,000 40,000 10,000 198,000 (20,000) 30,000 150,000 154,200 End of Year ? $35,700 53,062 45,000 10,000 208,000 (40,000) 35,000 150,000
Use the information provided below to prepare the Cash Flow Statement of Harmony Limited for the year ended 31 December 2020. INFORMATION The information provided below was extracted from the accounting records of Harmony Limited on 31 December 2020: Harmony Limited Extract of Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 6 600 000 Cost of sales (3 900 000) Gross profit 2 700 000 Operating expenses (1 710 000) Selling and administrative expenses 1 260 000 Depreciation 450 000 Operating profit 990 000 Interest expense (270 000) Profit before tax 720 000 Company tax (240 000) Profit after tax 480 000 Extract of Statement of Changes in Equity for the year ended 31 December 2020 Retained earnings Balance on 01 January 2020 1 500 000 480 000 Profit after tax Dividends paid and proposed in 2020 (180 000) 1 800 000 Balance on 31 December 2020
Use the following table: Case X Case Y Case Z Cash $ 940 $ 1,470 $ 1,940 Short-term investments 0 0 780 Receivables 0 1,690 1,360 Inventory 3,400 1,560 6,520 Prepaid expenses 2,600 1,020 1,460 Total current assets $ 6,940 $ 5,740 $ 12,060 Current liabilities $ 3,600 $ 1,800 $ 5,750 Required:Calculate the quick ratio in each of the above cases and select the case which is in the best position to meet short-term obligations most easily. (Round your answers to 2 decimal places.)
PART II - Below are 2019 FMT Company Cash flow accounts. Increase in bonds 170.0 Net income 117.5 Increase in notes payable Depreciation and amortization Additions to property, plant, and equipment 50.0 100.0 ($230.0) (200.0) Increase in inventories Increase in accrued wages and taxes 10.0 (60.0) (57.5) Increase in accounts receivable Payment of dividends to stockholders Increase in accounts payable 30.0 Net cash provided by (used in) operating activities Net cash used in investing activities Net cash provided by financing activities Net increase (decrease) in cash ? Requirements: 2. Compute for the following: Net cash provided by financing activities Net increase (decrease) in cash
WHAT IS THE NET CASH PROVIDED BY OPERATING ACTIVITIES?
You have been provided with the following information for Bee Ltd, a closely-held private company: Bee Ltd Income Statement for the year ending 31/03/2021 $ Sales 1,400,000 Less: Cost of sales 550,000 Gross profit 850,000 Interest on Government Bonds 2,100 Less: 380,000 Depreciation Interest expense 35,600 10,000 Bad Debts 5,000 Loss on sale – equipment 4,000 Insurance 12,200 Other expenses 312,800 472,100 185,295 286,805 70,000 Net Profit before tax Taxation Net Profit after tax Revaluation of Land Comprehensive Net Profit 356,805 Note during the 2021 year: $ Equipment with accumulated depreciation of 11,000 was sold for cash 20,000 Land was revalued upward by The company re-purchased shares at 70,000 100,000 Marketable securities were sold for cash.
Accounting Karen Company provides the following balances at the end of 2018? Mineral Deposit, cost - Php 20,000,000 Accumulated Depletion 7,000,000 Ordinary Share Capital 5,000,000 Share Premium 2,000,000 Capital Liquidated (800,000) Accumulated Profits – free portion 9,000,000 Accumulated Profits – appropriated for contingencies 800,000 Inventory of Resource Deposit (120,000 units) 1,440,000 Depletion Rate per Unit Php 6 Required: How much is the maximum amount of dividends that can be declared by Karen Company
Please answer all requirements
Barakah Company Balance Sheet as at 31st December 2019 Financed by: Fixed Assets (net after depreciation) 2$ $ Paid-up: Share Capital Retained Earnings Reserves 350,500 200,500 150,000 50,000 Land & Buildings 600,000 155,500 75,000 830,500 Equipment Vehicles Fixtures & Fittings Long Term Liabilities 25,000 751,000 Current Assets 125,000 Accounts Receivable 215,000 10,000 110,000 20,000 1,231,000 Inventory Current Other payables Trade creditors Liabilities 100,000 245,500 Prepayments Cash at Bank Cash in Hand Accrued expense 30.000 375,500 1,231.000 Additional Information: i) Work-in-Progress is one sixth of the total Inventory. Prepayments is related to rental of buildings. ii) ii) Bad Debts is 5% for the year. iv) Non Muslim ownership is at 20%. Required: Determine the zakat base and due for the company using: (a) Net Current Assets method; and (b) Net Invested Fund Method.
Problem 2 You are the controller for 21" Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company's balance sheet accounts. 21 Century Technologies Income Statement For the year ended December 31, 2009 Revenue: Net Sales Interest Revenue Gain on sales of marketable securities Costs and expenses: Costs of goods sold Operating expenses (including depreciation of $225 000) Interest expense Income tax expense Loss on sales of plant assets Net Income 4,800,000 60,000 $1,000 2,430,000 1,860,000 63,000 150,000 18,000 390,000 Additional information: 1. Accounts receivable increased by $90 000 2. Accrued interest receivable decreased by $3 000 3. Inventory decreased by $90 000 and accounts payable to suppliers of merchandise decreased by $24 000 4. Short-term prepayments of operating expenses increased by $9 000 and accrued liabilities for operating expenses decreased by $12…
Cash $ 200,490 Sales $ 8,104,080 Debt Investments (trading) (at cost, $145,000) 157,080 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 302,490 Equity Investments (long-term) 280,490 Notes Payable (short-term) 94,080 Accounts Payable 459,080 Selling Expenses 2,004,080 Investment Revenue 64,820 Land 264,080 Buildings 1,043,490 Dividends Payable 139,490 Accrued Liabilities 100,080 Accounts Receivable 439,080 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 29,080 Administrative Expenses 901,820 Interest Expense 212,820 Inventory 600,490 Gain 81,820 Notes Payable (long-term) 903,490 Equipment 604,080 Bonds Payable 1,003,490 Accumulated Depreciation-Equipment…