On July 1, 20x1, Sanchez Corporation acquired 3,000 shares (2 stock at $40 per share plus brokerage fees of $600. The invest 20% of the equity of Beal because inventory was understated $270,000 for the year and paid dividends of $2 per share at th the Beal shares is $42 per share at December 31, 20x1. Under the equity method, what would the company report in t investment?
Q: Exercise 7-3 (Algo) Reconciliation of Absorption and Variable Costing Net Operating Incomes [LO7-3]…
A: "Absorption costing is an accounting technique that encompasses both variable and fixed…
Q: Waterton Corporation reported that short-term investments in debt securities consisted of the…
A: The company determines whether the short-term investment resulted in unrealized gain or loss at the…
Q: The management of Unter Corporation, an architectural design firm, is considering an investment with…
A: The payback period is a capital budgeting metric that measures the time it takes to recover the…
Q: Yale Corporation issued to Zap Corporation $60,000, 8% (cash interest payable semiannually on June…
A: Bond is a fixed interest bearing security which is issued by the company to raise finance for the…
Q: Horticultural Products Inc. reported $1,022,740 profit in 2020 and declared preferred dividends of…
A: Weighted average outstanding shares - It is the adjusted amount of shares of a company in a…
Q: A company has bonds outstanding with a par value of $130,000. The unamortized premium on these bonds…
A: When bond market costs higher than its face value then bonds is called at premium. The difference…
Q: The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are…
A: Joint cost means the cost incurred to produce more than one units and then joint cost need to be…
Q: R On April 1, 2024, Donyel Boats Company sold a yacht to Darien Resorts & Company for $450,000.…
A: Notes receivable refers to a written agreement containing consent of the borrower indicating to pay…
Q: 69. The value of a 37% interest in Take'm or Leave'm Corp. was $675,000 before discounts and…
A: Control premium is the additional value created to exercise influence on the vendor company. The…
Q: What is the amount of loss on impairment GM will recognize at the end of 2023?
A: Double-declining method: This method of depreciation is a combination of straight-line method and…
Q: Question 38 Equipment was purchased for $296000 Freight charges amounted to $14400 and there was a…
A: Depreciation Expense is an expense incurred on the fixed assets of the company. It is charged due to…
Q: At the end of 2022, GM did not have any PP&E. On Jan 1, 2023, GM purchased the following assets.…
A: Depreciation is the reduction in the value of asset due tonormal wear and tearEffluxion of…
Q: Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and…
A: The entity may produce more than one product. The profitability of each product may be different one…
Q: Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Total capital as of December 31, 2019
A: The capital denotes the amount contributed by owners in the business. The capital amount may be…
Q: On January 1, 20x3, Frietas Corporation acquired all the assets and assumed all the liabilities of…
A: Goodwill is an intangible asset that represents the excess of the purchase price of a business over…
Q: A company will receive payments of $8,000 per year for the next five years under a subscription…
A: In accordance with generally accepted accounting principles (GAAP), the company should record the…
Q: Panda Company acquired a $20,000 bond originally issued by its 75%-owned subsidiary on January 2,…
A: Interest is defined as any compensation made by the borrowing party to the person from whom money…
Q: a. Assume that Spindler acquired the surfboards on September 1, 2020, and made payment on December…
A: Foreign exchange loss or gain occurs when one company sells its goods to another foreign currency…
Q: Assets Cash Accounts receivable Inventory Prepaid expenses Long-term Investments Plant assets…
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: Complete the following statements regarding the Schedule M-2. Schedule M-2 reconciles ( balance…
A: Schedule M-2 is an analysis of unappropriated retained earnings per books.
Q: Which of the following is NOT a plant asset that is reported on the balance sheet? Land Buildings…
A: Plant assets, or property, plant, and equipment (PP&E), represent tangible long-term assets…
Q: Mr. Onege earns a monthly salary of $8,000. Based on Mr Ortega's Form W-4, the tax tables require…
A: A payroll register is a record that shows the details of each employee's payroll for a specific…
Q: In the REA data modeling technique, the identifiable objects that have economic value to the…
A: In the REA (Resources, Events, Agents) data modeling technique, resources are the identifiable…
Q: Required: a. Calculate the accounting rate of return for the first year of the product. Assume…
A: The Accounting Rate of Return (ARR), is a financial metric used in capital budgeting to evaluate the…
Q: Cutter Enterprises purchased equipment for $51,000 on January 1, 2021. The equipment is expected to…
A: Depreciation Expenses are the expenses incurred on the wear and tear of the fixed assets. This is…
Q: On January 1, 2021, Solo Securities issued a $600,000,6%, three-year bonds payable. The market rate…
A: When the issue price of a bond is lower than the face value then, it is called to be issued at a…
Q: Vaughn Company follows the practice of pricing its inventory at LCNRV, on an individual-itern basis.…
A: ANSWERInventory should be valued at lower of cost or Net Realised Value (NRV).NRV = Estimated…
Q: Red Corporation constructed a machine at a total cost of $52 million. Construction was completed at…
A: The systematic distribution of a tangible asset's cost over the course of its useful life is known…
Q: Franklin Corporation issues $86,000, 10%, 5-year bonds on January 1 for $89,900. Interest is paid…
A: Bonds Payable is a written document issued by the borrower. This document acts as a promissory note…
Q: Wickers Restoration Services had the following transactions on May. 1. Received $48,000 from sale of…
A: A journal entry is made to record the financial transaction in the books of accounts.A trial balance…
Q: Required information [The following information applies to the questions displayed below.] Ramirez…
A: The depreciation expense per unit is calculated as depreciable cost divided by the estimated…
Q: Safeflower Systems allocates manufacturing overhead based on machine hours. Each connector should…
A: Variable cost Depends upon the production of goods or services that is increment of sales increases…
Q: överhead costs consist of assembly costs and inspection costs. The following information is…
A: The indirect Costs are allocated to different departments or products using different methods as…
Q: Kenworth Company uses a job-order costing system. Only three jobs-Job 105, Jcb 106, and Job 107-were…
A: The job cost sheet is prepared for each job separately. Each job may require a different amount of…
Q: The table below is Rebecca Minkoff's budgeted sales: April May June July August $452,000 $467,000 $…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Use the following information of VPI Company to prepare a statement of cash flows for the year ended…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…
Q: During the current year, Jack and Mary Bronson paid the following taxes: County taxes on residence…
A: Itemized deductions are specific expenses that eligible taxpayers can deduct from their taxable…
Q: 2. Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will…
A: 2.Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will…
Q: Attempt in Progress According to the accountant of Wildhorse Inc., its payroll taxes for the week…
A: The charges incurred by an employer for taxes on employee earnings and salaries are known as payroll…
Q: a. What is the amount of Net result? b. What is the amount of Operating result?
A: The income statement is a financial statement which shows the gross profit and net profit of the…
Q: 1. 2. 3. Other data: $13,900 of the notes payable are payable next year. (a) Journalize the…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Several years ago, a company acquired an asset at a cost of $400,000. Last year, the company…
A: Impairment occurs when an operational asset undergoes a permanent loss of benefits. There can be…
Q: Determine the average rate of return for a project that is estimated to yield total income of…
A: The accounting rate of return helps to determine the annual percentage of the project which is…
Q: If the contribution margin ratio for Harrison Company is 38%, sales were $425,000, and fixed costs…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs.…
A: If the partners opt to liquidate, the partnership's assets are liquidated, its debts are settled,…
Q: Construct a balance sheet using the following information: Gross fixed assets $75,000 Cash…
A: Balance sheet is one of the financial statement being prepared in business. This shows all assets,…
Q: Materials costs and conversion cost of 000 were charged Materials are added at the beginning of the…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Net present value method for a service company Coast-to-Coast Inc. is considering the purchase of an…
A: Annual net cash flow = Additional revenues - Driver cost - Annual operating cost
Q: 34 In the current year, a company reported cost of goods sold of $3,200,000 on its income statement.…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Vala
Step by step
Solved in 3 steps
- During 20X1, Blue Corporation sold products for $2,500,000 (gross amount) with the sales returns and allowances of $50,000. The company incurred selling expenses for $120,000 and administrative expenses for $330,000. During the year, the company purchased 23,000 common shares of Francis Corporation at $8 per share and recorded the FV-NI investments, and purchased 18,000 shares of Davis Corporation at $12 per share and recorded the FV-OCI investments. On December 31, 20X1, the share prices of Francis Corporation and Davis Corporation were $11 per share and $10 per share, respectively. The company recognized interest expense for $62,000. The beginning-of-year balance of inventory was $640,000 and the end-of-year balance of inventory was $590,000. During the year, the company purchased inventory for $1,600,000. On September 1, 20X1, the company discontinued operation of a division that had a loss of $150,000 for its operation in 20X1. The discontinued division had the carrying value…On January 4, 20Y6, Spandella Company purchased 160,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has 400,000 shares outstanding, including the Spandella shares. On July 2, 20Y6, Filington paid $600,000 in total dividends to its shareholders. On December 31, 20Y6, Filington reported a net income of $1,200,000 for the year. Spandella uses the equity method in accounting for its investment in Filington. a. Journalize the Spandella Inc. entries for the transactions involving its investment in Filington Company during 20Y6. 20Y6 Jan. 4 20Y6 July 2 20Y6 Dec. 31 b. Determine the December 31, 20Y6, balance of the investment in Filington Company stock account.On January 1, year one, the Miller corporation purchased 300, 000 shares of the Mayfair corporation for $ 5.7 million. The investment represented 30% of the Mayfair corporations outstanding common shares during year one Mayfair reported net earnings of $2.25 millionAnd paid a cash dividend of $.15 per share. During year two, Mayfair reported a net loss of $180,000, and again paid a dividend of $.15 per share. Calculate the book value of Miller's investment and Mayfair as of December 31, year and December 31, year two.
- On December 4, 20X0, ABC Corporation paid P1,296,000 for 40,000 ordinary shares of XYZ Company. The investment represents a 30% interest in the net assets of XYZ and gave ABC the ability to exercise significant influence over XYZ’s operating and financial policy decisions. ABC received dividends of P1 per share on December 4, 20X0, and XYZ reported net income of P640,000 for the year ended December 31, 20X0. The market value of XYZ’s ordinary shares at December 31, 20X0, was P32 per share. The book value of XYZ’s net assets was P3,200,000, and: • The fair value of XYZ’s depreciable assets, with an average remaining useful life of 8 years, exceeded their book value by P320,000. • The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. What amount of investment revenue should be reported in ABC’s income statement for the year ended December 31, 20X0?Kramer Corporation had the following long-term Investment transactions. Prepare the journal entries Kramer Corporation should record for these transactions and events. Jan 2 Purchased 5,000 shares of Optic, Inc. for $42 per share plus $7,000 in fees and commission. These shares represent a 35% ownership of Optic. Oct 15 Received Optic, Inc. cash dividend of $2 per share. Dec 31 Optic reported a net income of $66,000 for the year.Berk Company engaged in the following investment transactions during the current year. April 1 July 1 Bought 40,000 of the 100,000 outstanding shares of Apex Company for $400,000. During the year, Apex Company reported net income of $30,000, and paid dividend of $10,000. Bought a $270 million bond with 8% interest rate. The market interest rate was 6% for bonds of similar risk and maturity. Berk paid $310 million for the bonds. The company will receive interest semiannually on June 30 and December 31. The fair value of the bonds at December 31 was $240 million. Dec 31 Required: 1. Beck has significance influence over Apex's management. On December 31, how much would Berk report as the value of its investment in Apex on the balance sheet? 2. Berk intends to actively trade the bond investment. a. Prepare the journal entries related to the bond on July 1 and on December 31. b. On December 31, how much would Berk report as the value of the bond on The balance sheet Please avoid…
- On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee. Required: Prepare the journal entries for the original purchase, dividend, and sale. If an amount box does not require an entry, leave it blank. Feb. 12 Aug. 22 Nov. 10On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 shares issued. Red Corp. stock was worth $32 a shares. Solo Company also had to pay brokerage fees of 2% of the purchase price. For the year ending December 31, 20X1, Red Corp. earned net income of $240,000 and paid a total dividend of $3,000 to its shareholders. Solo Company really needed some cash, so on March 15, 20X2, it sold 100 shares of Red Corp. stock for $28 a share. Prepare the journal entry for the following dates (show all work): February 2, 20X1 b. December 31, 20X1 а. С. March 15, 20X2Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.65 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Ayayai sold the Sigma shares for $34.60 per share. Prepare Ayayai Corporation’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit September 8 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare Ayayai Corporation’s journal entry to record the dividends received. (Credit…
- On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Company's common stock directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $750,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $2,000,000 for the year. a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. If an amount box does not require an entry, leave it blank. b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account.On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Company’s common stock directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $750,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $2,000,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. Required: a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account. CHART OF ACCOUNTS…As a long-term investment, Fair Company purchased 20% of Midlin Company’s 120,000 shares for $144,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $117,000 and distributed cash dividends of $0.30 per share. At year-end, the fair value of the shares is $150,000. Required: 1. Assume no significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjustment for the investment’s fair value, if appropriate.