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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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 ($230.0) (200.0) Increase in inventories Increase in accrued wages and taxes 10.0 (60.0) (57.5) Increase in accounts receivable Payment of dividends to stockholders Increase in accounts payable 30.0 Net cash provided by (used in) operating activities Net cash used in investing activities Net cash provided by financing activities Net increase (decrease) in cash ? Requirements: 2. Compute for the following: Net cash provided by financing activities Net increase (decrease) in cash
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Barakah Company Balance Sheet as at 31st December 2019 Financed by: Fixed Assets (net after depreciation) 2$ $ 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.
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…
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The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash equivalents $ 5,000Accounts receivable (net) 20,000Inventory 60,000Property, plant, and equipment (net) 120,000Accounts payable 44,000Salaries payable 15,000Paid-in capital 100,000 The only asset not listed is short-term investments. The only liabilities not listed are $30,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.5:1.Required:Determine the following…