Financial Accounting Problem 6.2.11Prior to being united in a business combination, Peru Inc. and Vital Corp.had the following stockholders' equity figures:PeruVitalCommon stock ($1 par value) $220,000 $54,000Additional paid-in capital $110,000 $25,000Retained earnings$360,000 $130,000Peru issued 62,000 new shares of its common stock valued at $4.77 pershare for all of the outstanding stock of Vital.Assume that Peru acquired Vital on January 1, 2012. At what amount didPeru record the investment in Vital?

Explanation of Common Stock:Common Stock represents the ownership shares issued by a corporation to…

Answered: Financial Accounting Problem 6.2.11…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter14: Intercorporate Investments In Common Stock

Section: Chapter Questions

Problem 30P

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Answer the question below 1,2 and 3 with formula
Problem #9 Entries for Share Dividends E Tan Med-Care Inc. is a health insurance corporation. The following account balances appear on the statement of financial position of E. Tan Med-Care Inc.: Ordinary Shares (50,000 shares authorized), P10 par, P400,000; Share Premium-Ordinary, P42,500, and Retained Earnings, P299,500. The board of directors declared a 4% share dividend when the market price of the stock was P15 a share. Required: 1. Journalize the entries to record a. the declaration of the dividend. b. the issuance of the shares. 2. Determine the following amounts before the share dividend was declared: a. total share capital b. total retained earnings c. total shareholders' equity 3. Determine the following amounts after the share dividend was declared: a. total share capital b. total retained earnings c. total shareholders' equity
Consider the following premerger information about Firm X and Firm Y: 222 Total earnings Shares outstanding Per-share values: Market Book Firm X $92,000 49,000 Assets from X Assets from Y Goodwill Total Assets XY LA GA Firm Y $20,500 14,000 49 $ 18 $ 20 7 zursurch of M www.am entrat human pa grawe anakmuom 2 Hoe o Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $7 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm X assuming the use of the purchase accounting method. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
B1-51 Preparing a consolidated balance sheet Obj. 4 Pryor Corp. owns 100% of the common stock of Stark Inc. Pryor Corp.'s investment in Stark Inc. is recorded in its ledger as "Investment in Stark Inc." with a debit balance of $11,150,000. The stockholders' equity of Pryor Corp. and Stark Inc. for the year ending December 31, 20Y6, is as follows: Common stock Retained earnings Pryor Corp. $ 12,000,000 125,000,000 Stark Inc. $2,500,000 8,650,000 a. Prepare the elimination entry that would be made in the spreadsheet for preparing the consoli- dated balance sheet. b. Show how the stockholders' equity of Pryor Corp. and Subsidiary would be reported on the consolidated balance sheet.
If Company A invested $70,000 cash in Company B (a newly created subsidiary) with Company B issuing 1000 share of $5 par value common stock to the Parent Company. What is the credit item in the Parent Company Stock 70,000 Investment in B Company 70,000 Stock $5,000 and Paid-In-Capital $65,000 Cash 70,000
Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year
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PROBLEMS Problem 21-1 (ACP) 1 Aroma Company reported the following shareholders' equity: Ordinary share capital, 50,000 shares, P100 par Share premium Retained earnings 5,000,000 200,000 2,000,000 Subsequently, the following transactions, among others occurred: a. Treasury shares of 5,000 were acquired at P160 per share. b. Assuming the treasury shares were reissued for P1,000,000. c. Assuming the treasury shares were reissued for P700,000. Required: 1. Prepare journal entries to record the transactions. 2. Prepare journal entry to record the retirement of the treasury shares, assuming the treasury shares are not reissued. The original issue price of treasury shares was P104 per share. Problem 21-2 (ACP) the following issues of share capital: 200,000 shares at P20 250,000 shares at P25 4,000,000 6,250,000 per share. nsactions
xt sec i At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52) The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39) Saved O In year 2, Charter engaged in the following two transactions. Apr.10 Sold 1,000 shares of its investment in L Brands, Inc., at a price of $58 per share, less a brokerage commission of $100. Prev CAT Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $37 per share, less a brokerage commission of $150. At December 31, year 2, the market values of these stocks were: L Brands, Inc., $67 per share; and The Gap, Inc., $37 per share. Required: a-1. Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year 1. a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of…
PROBLEM 3: EXERCISES 1. Dinakdakan Co. declared P50 cash dividends per share. On the date of declaration, Dinakdakan Co.'s equity was as follows: 1,600,000 Share capital, P100 par Subscribed share capital Share premium Retained earnings vib 440,000 200,000 908,000 (288,000) 140,000 Treasury shares, P120 cost Other components of equity Total shareholders' equity 3,000,000-
Question 10 Rowe, Inc. owns 80% of Cowan Co.'s outstanding capital stock. On November 1, Rowe advanced $100,000 in cash to Cowan. What amount should be reported related to the advance in Rowe's consolidated balance sheet as of December 31? A. B. C. D. $0 $20,000 $80,000 $100,000

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