Assume X Corp creates a subsidiary, Y Corp, and invests $500,000 cash in exchange for all of the $1 par common stock (2,000 shares). What would journal entries X and Y make at the time of the investment?
Q: Multiple Cholce $22.25 $9.58
A: NAV=Assets- liabilities/Number of shares
Q: ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC…
A: A dividend refers to the amount that the shareholders receive from the company in which they have…
Q: n the recent Acquisition of A Bank and Building Society Limited, the following Information is…
A: Acquisition and Merger (A&M) is one of the way to expand the business. In this way, firm…
Q: 9. ABC paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of…
A: Formula: Total expenses = Finder's fees + Legal fees + Audit fees + Stock issuance + Stock…
Q: REQUIRED: (Show all the working) (a) Prepare necessary journal entries to record the above…
A: (a). Journal entries Date Account title and explanation Debit Credit 2021 1 Dividend…
Q: bove, was prepared immediately before this transaction. Provide the Investor Company's balances…
A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…
Q: Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally…
A: The shares are issued in order to arrange the capital for the business of the company.
Q: Question 1 .Panther Corporation decided to establish Snake Company as a wholly owned subsidiary by…
A: A journal is a detailed account that records all the financial transactions of a business, to be…
Q: If the owner of 200 shares sells his or h the trade is said to have occcured in th _market. Select…
A: There are two types of market one is primary markets where bonds and IPO are issued by companies to…
Q: Assume that you have just purchased some shares in an investment company reporting $975 million in…
A: Net asset value (NAV) per share = (Total Assets - Liabilities) / Number of shares outstanding
Q: Consider the following premerger information about Firm X and Firm Y: Total earnings Shares…
A: In merger assets of the company are combined to form one company and create value for company.
Q: Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm…
A: Outstanding Shares6200.001400.00Price per share $ 48.00 $ 18.00Synergistic…
Q: Which of the following transactions relating to shares in Pinder Ltd takes place in what we referred…
A: The financial market is defined as the place where financial assets and securities are bought and…
Q: Consider the following premerger information about Firm X and Firm Y: Total earnings Shares…
A: Since since no debt to the firms,Total assets of a firm = Number of shares * book value Existing…
Q: Ma1. Investor owns 10% of Investee shares and has the ability to exert significant influence. In…
A: The cash flow direct method determines changes in cash receipts and payments, which are reported in…
Q: 6. To acquire Gaines Corporation stock, Palmer Co. pays $61,500 in cash. What entry should be made…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the…
Q: Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y $79,000 $14,000…
A: Mergers refer to when two existing companies merge into one new company. The companies merge because…
Q: Bean Corp
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: A company paid $37,800 cash to acquire stock investments with insignificant influence. The correct…
A: Significant influence means that the investor has the ability to participate in financial and…
Q: Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm…
A: Answer-aStock…
Q: A corporation issues its preferred stock in exchange for land and a building with a combined market…
A: The investment can be made by owners in cash form or as an asset.
Q: Item No. 1 is based on the following information: IsV bats12 to 2293x3 ni Istiq6) sier…
A: The paid up capital is the amount of minimum value of shares to be issued.
Q: An entity has 10,000 shares issued and outstanding with a 100 par value. Statement in the book: If…
A: The declaration of dividend (cash or stock dividend) affects the retained earnings of the business.…
Q: A company has the following balance sheet (market values): Liabilities + Equity Debt Equity Assets…
A: Market value of equity = 1,200Number of shares outstanding = 300The current share price is
Q: Company A purchased a certain number of Company B's outstanding voting shares at $25 per share as a…
A: When the stock's intrinsic value and potential for growth are taken into account, fair value—the…
Q: 51. What is the amount of dividend per share that MOONSTONE paid on March 31, 2021? 1.50 0.85 1.59…
A: You have asked various questions which are multiple choice questions and our protocol and guidelines…
Q: What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, Net Capital Losses (LO 4.1,…
A: Capital Assets:-All those assets which individuals held whether associated with business or…
Q: merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase…
A: When two existing companies join to form one new company, it is called merger. The companies merge…
Q: The shareholders of ABC Corporation would like to know the valuation of their ownership in the…
A:
Q: You are auditing a company that owns 22% of the voting common stock of another corporation and uses…
A: Equity method: Equity method refers to a type of accounting used for investment between companies.…
Q: a. Issued ________shares of common stock. Stock has par value of ___ per share and was issued at…
A: a. 5000 shares , par value of $ 0.01 , was issued at $30
Q: Question # 2: Which of the following statements is CORRECT? a. If Apple issues…
A: Question no.2 In the above question the correct statement would be C. IPO is an example of primary…
Q: Assume X Corp creates a subsidiary, Y Corp, and invests $500,000 cash in exchange for all of the $1…
A: GIVEN X Corp creates a subsidiary, Y Corp, and invests $500,000 cash in exchange for all of the…
Q: Question # 2: Which of the following statements is CORRECT? a. If Apple issues…
A: Based on the origination of the security, a market is distinguished as a primary or secondary. Stock…
Q: Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC), representing a…
A: When any entity/company invests in the shares of another company and receives a cash dividend as…
Q: ABC Corp acquired 30,000 shares of XYZ Co. The shares were actively traded in the three markets. The…
A: Shares which are actively traded in market is to be recognised as investment at fair value. Fair…
Q: If P. company paid $360000 to acquire a part of S. company common stocks and if the positive…
A: The purchase consideration is the amount paid by the acquiring company to the subsidiary company in…
Q: 1. The cost method of accounting for stock investments is used when the company acquires a. Greater…
A: The different accounting methods are used when the company acquires its own assets are: Cost method,…
Q: Carlin Enterprises purchased 2,000 shares of the 2,000,000 common shares outstanding in Ca For the…
A: Companies investment money in other companies in the form of debt and equity and they must be shown…
1.
- Assume X Corp creates a subsidiary, Y Corp, and invests $500,000 cash in exchange for all of the $1 par common stock (2,000 shares).
What would
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Consider the following premerger information about Firm X and Firm Y: Firm X Firm Y Total earnings $ 95,000 $ 22,000 Shares outstanding 52,000 17,000 Pre-share values: Market $ 52 $ 21 Book $ 15 $ 10 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share, and that neither firm has any debt before or after the merger. a. Assuming the pooling of interests method is used, what is the equity of the combined firm? Equity value $ b. List the assets of the combined firm assuming the purchase accounting method is used. Assets from X $ Assets from Y Goodwill Total Assets XY $ Please dont provide solution image based thnxAssets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402a.Draw a picture illustrating the following fact pattern involving trust-preferred securities. Bank Z sets up a trust (a subsidiary entity) and owns 100% of the common stock in the trust. That trust issues preferred securities to investors (in exchange for cash) and the investors earn periodic fixed dividend payments on their preferred shares. Using the funds from the sale of preferred stock, the trust purchases junior subordinated debt from Bank Z and this debt pays periodic fixed interest payments equal to the dividend payments made by the trust. The trust has a call option, allowing it to call back the preferred shares from investors at its option. Additionally, Bank Z has a call option allowing it to call back its debt from the trust at its option. Bank Z guarantees to the trust’s investors that the trust will use its available cash to make interest payments.
- "Page 1 6 Record the necessary journal entry for the issuance of common stock. General Journal DR CR 7 Record the repurchase of common stock. General Journal DR CR 8 Record $50,000 in cash dividends declared. General Journal DR CR 9 Record the $50,000 cash dividends that have now been paid. General Journal DR CR 10 Assume and record a property dividend of inventory valued at $75,000 declared and paid. General Journal DR CR 11 Assume a common stock dividend declared of 19% of shares outstanding. Market at $12 per share. General Journal DR CR 12 Assume a common stock dividend declared of 35% of shares outstanding. General Journal DR CRJackie Inc. made the following capital transactions on a domestic share not listed in the exchangeJanuary 15 - purchased 25,000 shares at P16 eachJanuary 31 - purchased 10,000 shares at P20 eachMarch 1 - sold 20,000 of January 15 shares at P15 eachApril 25 - sold 8,000 of January 31 shares at P25 each On the return to be filed for the April 25 sale, what amount should be reflected in Item 11?Bean Corporation purchased 35% of the outstanding shares of common stock of Williams Corporation as a long-term investment. Subsequently, Williams Corporation reported net income. What journal entry would Bean Corporation use to record its share of the earnings of Williams Corporation? debit Cash: credit Dividend Revenue debit Investment in Williams Corporation Stock: credit Cash debit Cash: credit Investment in Williams Corporation debit Investment in Williams Corporation; credit Income of Williams Corporation
- Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 1,800 shares of stock outstanding at a market price of $40 a share. Firm B has 1,200 shares outstanding at a price of $47 a share. What is the value per share of the merged firm?Received a $400 dividend from our investment in Masco Company stock. The investment is treated as an equal method investment. What is the general journal entry?Q1. Plint Corporation exchanged shares of its $2 par common stock for all of Sark Company's assets and liabilities in a planned merger. Immediately prior to the combination, Sark's assets and liabilities were as follows: Assets Cash and Equivalents Accounts Receivable Inventory Land Buildings Equipment Accumulated Depreciation Total Assets Liabilities and Equities Accounts Payable Short-Term Notes Payable Bonds Payable Common Stock ($10 par) Additional Paid-In Capital Retained Earnings Total Liabilities and Equities $ 41,000 73,000 144,000 200,000 1,520,000 638,000 (431,000) $ 2,185,000 $ 35,000 50,000 500.000 1,000,000 325,000 275,000 $ 2,185,000 onal paid-in capita Immediately prior to the combination, Plint reported $250,000 $1,350,000 retained earnings. fair values of Sark's assets and liabilities were equal to their book values on the date of combination except that Sark's buildings were worth $1,500,000 and its equipment was worth $300,000. Costs associated with planning and…
- Ma3. Investor owns 10% of Investee shares and has the ability to exert significant influence. In 2022 Investee reported net income of $800,000 and paid cash dividends of $120,000. 1.. If Investor uses the indirect method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000 2. If Investor uses the direct method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000Carlin Enterprises purchased 2,000 shares of the 2,000,000 common shares outstanding in Captain Inc. Carlin intends to hold on to this investme for the foreseeable future. How should this investment be classified on the books of Carlin? O trading equity investment O held-to-maturity debt investment O held-to-maturity equity investment O available-for-sale equity investment Question 23 Held-to-maturity securities O affects other comprehensive income and appear as financing activities on the statement of cash flows. are never disclosed in the notes to financial statementsA merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows: Minnie Corporation Mickey Corporation Total earnings $1,682,000 $2,581,000 Number of shares of stock outstanding 290,000 890,000 EPS $5.80 $2.90 P/E ratio 10X 20X Market price per share $58 $58 a. On a share-for-share exchange basis, what will the postmerger EPS be? (Round the final answer to 2 decimal places.) Postmerger earnings per share $ b. If Mickey Corporation pays a 25 percent premium over the market value of Minnie Corporation, how many shares will be issued? (Do not round intermediate calculations.) Shares issued shares c. With the 25 percent premium, what will the postmerger EPS be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Postmerger earnings per share $
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)