On January 1, 20x1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 67,000 SunTime's December 31, 20X1, trial balance in SFr is as follows Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Debit SFr 7,700 23,500 5,200 26,500 104,000 72,500 10,400 30,500 17,800 SFr 298,100 Credit SFr 10,400 13,200 51,000 67,000 156,500 SFr 298,100 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Its books show a $3,796 payable to SunTime 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1

On January 1, 20x1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 67,000 SunTime's December 31, 20X1, trial balance in SFr is as follows Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total Debit SFr 7,700 23,500 5,200 26,500 104,000 72,500 10,400 30,500 17,800 SFr 298,100 Credit SFr 10,400 13,200 51,000 67,000 156,500 SFr 298,100 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Its books show a $3,796 payable to SunTime 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1

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

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 Padre Company Book Values $ 12/31 354, 750 242, 250 482, 500 Sol Company Book Values 12/31 56,700 $ 312,000 174,000 194, 000 720,000 837,500 332,000 242,000 252,000 (352,000) (152,000) (189,000) (54,500) (1,132,500) (532,500) (660, 000) (210, 000) (70,000) (90, 000) (422,500) (260, 000) Fair Values (1,000,000) (354,700) 947,000 333,000 12/31 56, 700 312, 000 229, 900 171, 200 395, 300 290, 800 (152,000) (54,500) (532, 500) Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $228,000 in cash and issuing 14,500 shares of…
On January 1, 20X1, Himalaya Corporation organized Alps Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 120,000. Alps's December 31, 20X1, trial balance in SFr is as follows: Debit (SFr) Credit(SFr) Cash 14000 Accounts Receivable 40000 Receivable from Himalaya 10000 Inventory 50000 Plant and Equipment 200000 Accumulated Depreciation 20000 Accounts Payable 24000 Bonds Payable 100000 Common Stock 120000 Sales 300000 Cost of goods sold 140000 Depreciation Expense 20000 Operating Expense 60000 Dividend paid 30000 Total SFr564,000 SFr 564,000 Additional Information The receivable from Himalaya is denominated in Swiss francs. Himalaya's books show a $8,000 payable to Alps. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased…
On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 76,000. SunTime's December 31, 20X1, trial balance in SFr is as follows: Credit Cash Accounts Receivable (net) Receivable from Popular Creek Inventory Plant and Equipment Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Sales Cost of Goods Sold Depreciation Expense Operating Expense Dividends Paid Total January 1 March 11 SFr 1 $ 0.73 SFr 1$ 0.74 SFr. 1 = $0.77 SFr 1- $ 0.80 SFr 1 = $0.75 Debit SFr 8,100 21,000 6,200 27,500 107,000 72,500 11,600 31,500 15,800 SFr 301,200 Additional Information 1. The receivable from Popular Creek is denominated in Swiss francs. Popular Creek's books show a $5,200 payable to SunTime. 2. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased November 1. 3. Equipment is depreciated by the straight-line method with a 10-year life…
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…
Hw.98.
Stiff Sails Corporation, a U.S. company, operates a 100%-owned British subsidiary, SeaBeW Corporation. The U.S. dollar is the functional currency of the subsidiary. Financial statements for the subsidiary for the fiscal year-end December 31, 2024, are as follows: Sales Cost of Goods Sold Beginning Inventory Purchases Cost of Goods Sold Depreciation B. Goods Available For Sale Less: Ending Inventory Selling and Admin. Expenses Income Taxes Net Income Current Assets Cash Accts. Rec. Inventories Required: A. SeaBeWe Corporation Income Statement 155,000 171,000 285,000 611,000 SeaBeWe Corporation Partial Balance Sheet 310,000 265,000 575,000 285,000 290,000 79,000 155,000 32,000 July 1, 2022 Jan. 1, 2024 June 30, 2024 Dec. 31, 2024 Average for 2024 1. Cost of Goods Sold. 2. Depreciation Expense. 3. Equipment. Other Information: 1. Equipment costing 340,000 pounds was acquired July 1, 2022, and 38,000 was acquired June 30, 2024. Depreciation for the period was as follows: Pounds 650,000…
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…
3
On January 1, 2021, Casey Corporation exchanged $3,209,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: $ 3,209,000 Fair value of Kennedy (consideration transferred) Carrying amount acquired 2,600,000 609,000 Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) Accounts Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings Total liabilities and equities $…
Dhapa
A-6