Answered: mpany sale, a workpaper entry is made…

Business

Accounting

mpany sale, a workpaper entry is made by debiting. A. All of these.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Statement I: In a business combination achieved in stages, the resulting gain or loss from the…

A: Business combination: Business combination refers to the process in which one business obtains…

Q: cy, plant and equipment, net 33,600 Long-term liabilities 13,440 -Stockholders' equity 26,880…

A: When an investor pays cash for the the assets and assumes the liabilites of the investee company ,…

Q: In the year a subsidiary sells land to its parent company at a gain, a workpaper entry is made…

A: The Work paper entry is the entry that is used to eliminate the impact of unearned profit which is…

Q: During 2021, Cullumber Company purchased 13000 shares of Bonita Corp. common stock for $279500 as a…

A: Note: As per the Policy, We’ll answer the first question since the first question is incomplete (net…

Q: Following are preacquisition financial balances for Padre Company and Sol Company as of December 31.…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: Peer Company acquired of the common stock of Sight Company on January 1, year one, for On that date,…

A: Consolidation is the process of integrating the financial accounts of a parent business and its…

Q: Change from the fair value method to the equity method Assume an investor company acquires for…

A: Journal entries are passed for preparing final accounts with ease and without any confusion, as all…

Q: ollowing are preacquisition financial balances for Padre Company and Sol Company as of December 31.…

A: Inventory $632500+275300 = $907800 Land $792500+149100 =$941600 Building & Equipment=…

Q: When the acquisition of a subsidiary occurs during a reporting period, the com O and subsidiary…

A: A corporation which belongs to another corporation which is usually referred to as parent…

Q: In years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a…

A: The question is related to Consolidated Financial Statements and is multiple choice question.…

Q: Computing the amount of investment income and preparing [I] consolidation entries-Cost method Assume…

A: solution: Income statement : Particulars Amount $ Net income reported by subsidiary for 2016…

Q: In a mid-year purchase when the subsidiary's books are not closed until the end of the year, the…

A: A consolidated financial statement is a group's financial statement that is presented as a single…

Q: On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,840…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Q: Assume that P acquires controlling interest in S and there is a Differential at the acquisition…

A: Step 1 Consolidated Financial Statements is Full Consolidation and all the shareholding attributes…

Q: How do I find Leases, Share-based compensation, Dilutive securities, and Revenue recognition for…

A: To find information on leases, share-based compensation, dilutive securities, and revenue…

Q: [The following information applies to the questions displayed below. Pumpworks Inc. and Seaworthy…

A: A company’s balance sheet contains the stockholders’ equity section to provide information on the…

Q: On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $708,000. On…

A: Equity Accounting method - This method is used for accounting of investments in associates and joint…

Q: On March 31, 2024, Chow Brothers, Incorporated, bought 8% of KT Manufacturing's capital stock for…

A: Entries into journals that are accurately documented help with tax responsibilities. To calculate…

Q: Question #10: Argossey Corp owns a 70% equity interest in Gramcercy a subsidiary company. During the…

A: Definition: Non-controlling interest: The non-controlling interest can be presented in the financial…

Q: The following information relates to Crane Company for 2022: Realized gain on sale of…

A: To calculate comprehensive income for Crane Company for 2022, we need to consider the realized and…

Q: Required. Prepare the consolidation journal entries required to eliminate the above intragroup…

A: Consolidated journal entries are the type of journal entries prepared by the parent company at the…

Q: Selected information from the separate and consolidated balance sheets and income statements of…

A: Spin's payable to power is calculated by adding the standalone balances of accounts receivable and…

Q: A subsidiary provided services to its parent during the current year, at a cost of $120,000. The…

A: The consolidation of financial statements requires the elimination of transactions between a parent…

Q: Repurchased share transactions are reported on the: A) income statement as a part of continuing…

A: Share repurchase-When a company buys its own shares from the market place or from the shareholders,…

Q: Downstream sales that remained unsold by the subsidiary as of the year-end A.will decrease both…

A: Intercompany transactions are transactions of sale and purchase between parent company and…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Company SSS sells equipment to its parent company at a gain. In years subsequent to the year of the intercompany sale, a workpaper entry is made by debiting.

A. All of these.

B. Non-controlling Interest

C. Equipment

D. Retained Earnings- Parent

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In Bell Group's consolidation worksheet, the opening balance of retained earnings under 'group' column shows a balance of 70000. If there is a debit entry of 16000 in the NCI column, the opening balance of retained earnings under 'parent' column could be: A. 86000 B. 54000 C. 70000 D. 16000 Please show entries or details to explain.
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Accounts Inventory Land Buildings and equipment Franchise agreements Goodwill Padre Company Book Values Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 $ Amounts 12/31 300, 750 Sol Company Book Values 12/31 62,200 $ 279,000 353,000 510,000 269,000 677,500 176,000 747,500 340,000 288,000 273,000 (375,000) (185,000) (97,000) (52,000) (1,007,500) (590,000) (660,000) Fair Values (210,000) (70,000) (90,000) (537,500) (326,000) (1,055,750) (418,200) 1,000,000 398,000 Note: Parentheses indicate a credit balance. On December 31, Padre…
Income information for 2019 taken from the separate company financial statements of Paris corporation and its 75% old subsidiary San Antonio corporation is shown in the image. Paris gain on sale of building relates to a building with a book value of 40,000 and a 10 year remaining useful life that was sold to San Antonio for 60,000 of January 1,2019. At what amount will the gain on sale of building appear under consolidated/group income statement of Paris and San Antonio what the year 2019 should be a. zero b. 5,000 c. 15,000 d. 20,000 The consolidated group depreciation expense for 2019 should be a. 158K b. 160K c. 162K d. 180K The profit attributable to equity holders of parent or CNA contributable controlling interest for 2019 should be: a. 295K b. 277K c. 275K d. 220K
need to jornal entries
Kristen Lu purchased a used automobile for $25,100 at the beginning of last year and incurred the following operating costs: Depreciation ($25,100 ÷ 5 years) $ 5,020 Insurance Garage rent Automobile tax and license Variable operating cost $ 2,600 $ 1,300 $ 680 $ 0.14 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,020. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 24,000 miles last year. Compute the average cost per mile of owning and operating the car. Note: Round your answers to 2 decimal places. Average fixed cost per mile $ 0.40 Variable operating cost per mile Average cost per mile $ 0.14 $ 0.54 2. Kristen is unsure about whether she should use her own car or rent a car to go on an extended cross-country trip for two weeks during spring break. What…
What is the journal entry for Subsidiary if it sold an inventory bought at $300 to its Parent company at a price of $200?
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Accounts Buildings and equipment Franchise agreements Goodwill Revenues Additional paid-in capital $ Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Amounts Sol Company Book Values Book Values Fair Values 12/31 12/31 84, 100 392,000 249,000 200,000 237,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $349,000 in cash and issuing 11,400 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $23,400 as well as $12,800 in stock…
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Inventory Land Accounts Buildings and equipment Franchise agreements Goodwill $ Revenues Additional paid-in capital Expenses Retained earnings, 1/1 Retained earnings, 12/31 Padre Company Book Values 12/31 Amounts Sol Company Book Values 12/31 Fair Values 12/31 59,400 381,000 349, 100 142,900 387,500 268,800 (149,000) (40,000) (1,132,500) (660,000) (660,000) (660,000) 317,000 240,000 381,000 520,000 296,000 762,500 170,000 672,500 321,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $219,000 in cash and issuing…
b. On November 30 Year 1, a company declared property dividends when the property has a carrying amount of P500,000 and fair value of P520,000. On December 31, Year 1, the fair value less cost to distribute of the property is P480,000. On February 25, the date of payment, the property has fair value less cost to distribute of P470,000. The gain or loss on distribution of the property dividend is
Please Solve with Explanation and Do not give image format
The adjusted trial balance for the year of SNEED Corporatioon attached in ss blow thanks for help apoprecaited rwohwtkhpotw pwtkoj
Effects on consolidated financial statements of acquisition of affiliate's debt from non-affiliate On January 1, 2022, a Parent company has a debt outstanding that was originally issued at a discount and was purchased, on issuance, by an unaffiliated party. On January 1, 2022, a Subsidiary of the Parent purchased the debt from the unaffiliated party. The debt was purchased by the Subsidiary at a slight premium. The Parent is a calendar year company. Which one of the following statements is true? The consolidated balance sheet at December 31, 2022 will report none of the debt, and the consolidated income statement for the year ended December 31, 2022 will report a gain or loss from constructive retirement of the debt and will not report any interest expense from the debt. The consolidated balance sheet at December 31, 2022 will report the debt, and the consolidated income statement for the year ended December 31, 2022 will not report any interest expense from the debt. The consolidated…