On January 1, 2007, Jones Company acquired 90 percent of the outstanding common stock of Smith Corporation for P1,242,000. On that date, the fair value of noncontrolling interest was equal to P138,000. The entire differential was related to land held by Smith. At the date of acquisition, Smith had common stock outstanding of P520,000, additional paid-in capital of P200,000, and retained earnings of P540,000. During 2007, Smith sold inventory to Jones for P440,000. The inventory originally cost Smith P360,000. By year-end, 30 percent was still in Jones' ending inventory. During 2008, the remaining inventory was resold to an unrelated customer. Both Jones and Smith use perpetual inventory systems. Income and dividend information for both Jones and Smith for 2007 and 2008 are as follows: Smith Corp. Net income 360,000 Jones Company Operating income 2007 860,000 Dividends 160,000 Dividends 200,000

On January 1, 2007, Jones Company acquired 90 percent of the outstanding common stock of Smith Corporation for P1,242,000. On that date, the fair value of noncontrolling interest was equal to P138,000. The entire differential was related to land held by Smith. At the date of acquisition, Smith had common stock outstanding of P520,000, additional paid-in capital of P200,000, and retained earnings of P540,000. During 2007, Smith sold inventory to Jones for P440,000. The inventory originally cost Smith P360,000. By year-end, 30 percent was still in Jones' ending inventory. During 2008, the remaining inventory was resold to an unrelated customer. Both Jones and Smith use perpetual inventory systems. Income and dividend information for both Jones and Smith for 2007 and 2008 are as follows: Smith Corp. Net income 360,000 Jones Company Operating income 2007 860,000 Dividends 160,000 Dividends 200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

please provide compulsory explanation , computation clearly for each parts and steps answer in text form provide well explained and computed answer for all requirements attempt if you can answer all or skip
Prepare the entries for transaction below and indicate what journal it is 2 Aug business sold merchandize inventory to micro universe co. For $4800, terms: 3/10, n/60 FOB. The merchandize had cost $3000
Please do not give solution in image format ? And explain proper steps by Step.
Accounting records for Antoinette Designs (AD) for November show the following (each entry is the total of the actual entries for the account for the month): Account Titles Work-in-Process Inventory (Direct Labor) Wages Payable Direct Materials Inventory Accounts Payable Finished Goods Inventory Work-in-Process Inventory Cost of Goods Solda Finished Goods Inventory Debit 7,200 122,130 136,800 131,400 Credit 7,200 Required: a. What was the finished goods inventory balance on November 30? b. How much manufacturing overhead was applied for November? c. What was the manufacturing overhead rate for November? d. How much manufacturing overhead was incurred for November? e. What was the Work-in-Process Inventory on November 1? f. What was the Work-in-Process Inventory on November 30? 122,130 136,800 131,400 aThis entry does not include any over- or underapplied overhead. Over- or underapplied overhead is written off to Cost of Goods Sold once for the month. For November, the amount written…
How would you record this transaction in a journal entry? Accepted a sales return from Eastern for an item having an original gross sales price of $6000. The original sale to eastern occurred in November with terms 2/15, n/30.
Here is the new question. Unfortunately it did not go over completely last time. May I please get some help on this practice question
its Skipped eBook The following information is available for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials inventory Advertising expense The amount of raw materials used in production for the year is: $ 12, 200 88,400 11, 600 780
Please help
1a) Complete the table column “write down per item” and then sum the final column 1b) Compute the amount of the total write down when the LCM/NRV rule is applied to each item 2) prepare the journal entry Peterson furniture designs would record on December 31st to write down its inventory to LCM/ NRV THANK YOU IN ADVANCE
Need some help with this one..
The cost accountant for Sunset Fashions has compiled the following information for last quarter's operations: Administrative costs Merchandise inventory, April 1 Merchandise inventory, June 30 Merchandise purchases Miscellaneous store costs Sales commissions Sales revenue Store lease Utilities Transportation-in costs Wages and benefits Required: 1. Prepare a cost of goods sold statement. 2. Prepare an income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement. SUNSET FASHIONS Income Statement For the Quarter Ended June 30 Sales revenue Cost of goods sold Gross margin Store rent Operating loss $ $ $ 232,000 55,000 45,500 1,790,000 23,400 134,400 3,126,000 53,000 57,900 124,400 770,000 $ 3,126,000 1,923,900 1,202,100 53,000 68,400