Need answer the accounting question not use ai Park & Company was recently formed with a $6,200 investment in the company bystockholders in exchange for common stock. The company then borrowed $3,200 from a localbank, purchased $1,120 of supplies on account, and also purchased $6,200 of equipment bypaying $2,120 in cash and signing a promissory note for the balance. Based on thesetransactions, the company's total assets are:a) $14,600b) $12,400c) $11,520d) $9,400

Step 1: Define Total assetsTotal assets refer to all of the valuable possessions a small business…

Answered: Park & Company was recently formed with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Abakada Incorporated acquired all the assets and liabilities of Egaha Company on January 1, 2018. The consideration are as follows: Cash Equipment Cash contingency Stock contingency Bank loan, at face value The cash payments are distributed to the following payees: Former owners of Egaha Company Lawyers for legal services Actuarial for valuation of Egaha's net assets Bank, transaction costs for the bank loan 2,000,000 500,000 30,000 50,000 1,000,000 Business Combination Page 4 of 5 1,800,000 80,000 50,000 70,000 Answer the following independent questions: 19. If the fair value of net assets of Egaha amounted to Php3,000,000, how much is the goodwill (bargain purchase gain) on business combination? 20. If bargain purchase gain on the acquisition amounted to Php40,000, how much could be the fair value of net assets acquired?
The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Fixed assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.
The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Current assets for this Corporation are $45,000. $55,000. $95,000. $155,000. $190,000.
Oakdale Company borrowed $1,960,000 cash from Eugene National Bank last year. In addition, the company repaid a $1,260,000 note payable to Michigan State Bank. How should these transactions be listed in the Statement of Cash Flows? Multiple Choice Oakdale can combine the transactions and show an increase to cash of $700,000 In the investing activities section of the statement. Oakdale can combine the transactions and show an increase to cash of $700,000 in the financing activities section of the statement. A decrease to cash for $1,260,000 is listed in the investing activities section and an increase of $1,960,000 is in the financing activities section. Transactions must be shown separately as a decrease to cash for $1,260,000 and an increase of $1,960,000 in the financing activities section.
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a.financing activities. b.operating activities. c.noncash investing and financing activities. d.investing activities. On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210…
Kela Corporation reports net income of $570,000 that includes depreciation expense of $78,000. Also, cash of $59,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Choice $629,000. $648,000. $492,000. $707,000.
Kela Corporation reports net income of $550,000 that includes depreciation expense of $77,000. Also, cash of $52,000 was borrowed on a 3-year note payable. Based on this data, total cash inflows from operating activities are: $679,000. $473,000. $627,000. $602,000.
The following information pertains to an entity’s cash account: Cash balance, beginning 880,000 Cash receipts from the sale of goods 8,000,000 Cash receipts from dividends and interest 80,000 Cash payments for interest 250,000 Cash payments to suppliers of goods 6,000,000 Cash payments to employees 800,000 Cash payments to acquire property, plant and equipment 1,200,000 Cash receipts from sales of property, plant and equipment 280,000 Cash payments to acquire equity or debt instruments of other entities 520,000 Cash receipts from sales equity or debt instruments of other entities 430,000 Cash proceeds from issuing shares 1,600,000 Cash payments to owners to redeem the entity’s shares 340,000 Cash proceeds from borrowings 2,100,000 Cash repayments of amounts borrowed 1,700,000 The entity’s cash balance at the end of the period is a. 2,560,000 b. 2,650,000 c. 2,480,000 d. 2,840,000
The December 31, 2021 statement of financial position of PINK Company contained the following current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net 1,775,500 Inventories 387,270 Prepaid expenses 500,000 An examination revealed that: • Cash-includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdraft, P13,000; and petty cash fund which includes IOUs of employees, P1,500 Accounts receivable - includes accounts with credit balances of P25,000; and accounts for write off, P12,500 Inventories - includes goods held on consignment, P27,000; goods in transit to customers, FOB destination, 50,250 Prepaid expenses - consist of an insurance applicable for 6 months starting October 16, 2021, 80,000. How much should PINK report as current assets on December 31, 2021?
Snyder Company's transactions for the year ended December 31, 2020 included the following: • Purchased real estate for $1,250,000 cash which was borrowed from a bank. • Sold available-for-sale securities for $1,000,000. • Paid dividends of $1,200,000. • Issued 500 shares of common stock for $500,000. • Purchased machinery and equipment for $250,000 cash. • Paid $900,000 toward a bank loan. • Reduced accounts receivable by $200,000. • Increased accounts payable $400,000. Snyder's net cash used in financing activities for 2020 was a. $900,000 O b. $850,000 c. $450,000 O d. $350,000
Manahan Corporation received its August 31 bank statement showing total funds on deposit of $288,090.09. This amount was $149,158.22 in excess of the balance in the general ledger Cash account. Additional information consists of the following: The company has a 1-year, $100,000, certificate of deposit. This amount is included in the total funds listed on the bank statement. Manahan classifies this security in a separate investment account in its general ledger. Interest earned on the CD was $475 during the month. This interest is free for withdrawal and is automatically posted to the regular checking account. Manahan's first notification of the amount of interest for the month is via the bank statement, and the interest income has not yet been recorded in the general ledger Cash account. Manahan Corporation received a $50,000 draft for an oil and gas lease from XTX Exploration. This draft was presented to the bank in early July. Drafts are not cash until the maker…
Kraco Corporation reported net income of $450,000, including the effects of depreciation expense of $60,000, and amortization expense on a patent of $10,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflow from operating activities using the indirect method was: O a. $520,000 O b. $470,000 OC. $440,000 O d. $570,000

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