Provide this question solution general accounting On June 1, Cline Co. paid $969,000 cash for all of the issued and outstanding common stockof Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow:CashAccounts receivable$247,000$254,000Capitalized software costs $330,000Goodwill$116,000LiabilitiesNet assets$(215,000)$732,000On June 1, Renn's accounts receivable had a fair value of $190,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $258,000. All otheritems were stated at their fair value. On Cline's June 1 consolidated balance sheet, how muchis reported for goodwill?a. $330,000b. $21,000c. $95,000d. $159,000

Step 1: Define GoodwillGoodwill represents an intangible asset that is reported on the balance sheet…

Answered: On June 1, Cline Co. paid $969,000 cash…

Cornerstones of Financial Accounting

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Chapter11: The Statement Of Cash Flows

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Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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On June 1, Cline Co. paid $1,098,500 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow: Cash $ 223,000 Accounts receivable 232,500 Capitalized software costs 362,000 Goodwill 182,000 Liabilities (137,000 ) Net assets $ 862,500 On June 1, Renn’s accounts receivable had a fair value of $189,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $288,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
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On June 1, Cline Co. paid $870,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow: Cash $ 239,000 Accounts receivable 181,000 Capitalized software costs 340,000 Goodwill 103,000 Liabilities (226,000 ) Net assets $ 637,000 On June 1, Renn’s accounts receivable had a fair value of $136,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $253,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill? Multiple Choice $340,000. $20,000. $128,000. $83,000.
On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:Cash . . . . . . . . . . . . . . . . . . $150,000 Accounts receivable . . . . . . . . .180,000Capitalized software costs . . . 320,000Goodwill . . . . . . . . . . . . . . . . . 100,000Liabilities . . . . . . . . . . . . .. . . (130,000)Net assets . . . . . . . . . . . . .. . $620,000 On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
The general ledger trial balance of Cullen Corporation includes the following accounts at Dec. 31, 2021: Sales revenue P1,200,000 Interest income 24,000 Proceeds on sale of fixed assets 50,000 Written-down value of assets sold 45,000 Valuation gain on trading investments 20,000 Dividends received 5,000 Cost of sales 840,000 Finance expenses 18,000 Selling and distribution expenses 76,000 Administrative expenses 35,000 Income tax expense 85,000 How much should be reported as profit for the year. ended Dec. 31, 2021? a. P285,000 b. P200,000 c. P195,000 d. P150,000
Finch Company had the following balance sheet accounts at December 31, 20X1 and 20X2: Assets 20X2 20X1 Cash $484,000 $220,000 Short-term investments (AFS debt securities) 660,000 Accounts receivable (net) 1,122,000 1,122,000 Inventory 1,518,000 1,320,000 Long-term investments 440,000 660,000 Property, plant & equipment 3,740,000 2,200,000 Accumulated depreciation (990,000) (990,000) Patent 198,000 220,000 Accounts payable & accrued liabilities 826,000 584,000 Bonds Payable 1,000,000 1,000,000 Notes payable (due 20X6) 638,000 Common stock, $1 par 1,760,000 1,540,000 Additional paid-in capital 880,000 550,000 Retained earnings 2,068,000. 1,078,000 The following additional information is available for 20X2 activities: Net income was $1,650,000. Cash dividends of $660,000 were declared and paid. Equipment with a cost of $1,200,000 and accumulated depreciation of $848,000 was sold for $396,000. A long-term equity investment was sold for $352,000. There were no other transactions affecting…
ABC Company, as of December 31, 2021 provided the following balances: Cash, net of a P7,000 overdraft 80,000 Receivable, net of customer credit balances totaling P6,000 30,000 Inventory (P20,000 of which are held on consignment 60,000 Prepayments 10,000 Property, plant and equipment, net of accumulated depreciation of P15,000 90,000 Accounts payable net of debit balances in suppliers' accounts of P3,000 45,000 Notes payable – bank, due on July 2022 25,000 Income tax payable 15,000 17. Total current assets reported in the December 31, 2021 balance sheet is a. 176,000 b. 156,000 c. 173,000 d. 170,000
On January 1, 2021, the general ledger of Tripley Company included the following account balances: Accounts Debit Credit Cash $ 94,000 Accounts receivable 44,000 Allowance for uncollectible accounts $ 9,400 Inventory 30,400 Building 90,400 Accumulated depreciation 14,000 Land 208,000 Accounts payable 40,000 Notes payable (8%, due in 3 years) 60,000 Common stock 104,000 Retained earnings 239,400 Totals $ 466,800 $ 466,800 The $30,400 beginning balance of inventory consists of 304 units, each costing $100. During January 2021, the company had the following transactions: January 2 Lent $24,000 to an employee by accepting a 6% note due in six months. 5 Purchased 3,700 units of inventory on account for $407,000 ($110 each) with terms 1/10, n/30. 8 Returned 100 defective units of inventory purchased on January 5. 15 Sold…
Hancock Company reported the following account balancesat December 31, 2027:Sales revenue $97,000Dividends. $11,000Supplies 13,000Accounts payable 41,000Patent $59,000Building Common stock.. $27,000Insurance expense .... $31,000Notes payable .. $39,000Income tax expense $42,000Cash . . $19,000Repair expense ?Copyright $20,000Equipment $14,000Utilities payable. $22,000Inventory $64,000Retained earnings. .. $87,000 (at Jan. 1, 2027)Interest revenue $55,000Cost of goods sold ..... .. $37,000Accumulated depreciation .... $23,000 $34,000Accounts receivable ? Trademark. ... $51,000Calculate the total intangible assets reported in HancockCompany's December 31, 2027 balance sheet. The following additional information is available:1) The note payable listed above was a 4- year bank loan taken out on September 1, 2024.2) The total P - P - E at Dec. 31, 2027 was equal to 75% of the total current liabilities at Dec. 31, 2027. ՄԴ S
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The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2021 (millions of dollars) Assets Liabilities and Equity Cash and equivalents $ 20 Accounts payable $ 150 Accounts receivable 610 Accruals 320 Inventories 830 Notes payable 215 Total current assets $ 1,460 Total current liabilities $ 685 Net plant and equipment 2,465 Long-term bonds 1,490 Total liabilities $ 2,175 Common stock (100 million shares) 250 Retained earnings $ 1,500 Common equity $ 1,750 Total assets $ 3,925 Total liabilities and equity $ 3,925 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $ 7,250 Operating costs excluding depreciation and amortization 5,430 EBITDA $ 1,820 Depreciation and amortization 410 EBIT $ 1,410 Interest 130 EBT $ 1,280…
Consider the following financial data for Terry Enterprises: Balance Sheet as of December 31, 2018 Cash $ 86,000 Accounts payable $ 15,500 Accts. receivable 91,500 Notes payable 93,500 Inventories 65,500 Accruals 19,500 Total current assets $ 243,000 Total current liabilities $ 128,500 Long-term debt 162,500 Net plant & equip. 419,500 Common equity 371,500 Total assets $ 662,500 Total liab. & equity $ 662,500 Statement of Earnings for 2018 Industry Average Ratios Net sales $ 642,500 Current ratio 2.2× Cost of goods sold 482,000 Quick ratio 1.7× Gross profit $ 160,500 Days sales outstanding 44 days Operating expenses 119,500 Inventory turnover 6.7× EBIT $ 41,000 Total asset turnover 0.6× Interest expense 14,500 Net profit margin 7.2% Pre-tax earnings $ 26,500…

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