Problem 6-22 (Algo) (LO 6-2)On December 31, 2023, Petra Company invests $45,000 in Valery, a variable interest entity. In contractual agreements completed onthat date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediatelyafter Petra's investment, Valery presents the following balance sheet:CashMarketing softwareComputer equipmentTotal assets$ 45,000165,00065,000$ 275,000Long-term debtNoncontrolling interestPetra equity interestTotal liabilities and equity$ 95,000135,00045,000$ 275,000Each of the amounts represents an assessed fair value at December 31, 2023, except for the marketing software.The December 31 business fair value of Valery is assessed at $180,000.Required:a. If the carrying amount of the marketing software was undervalued by $50,000, what amounts for Valery would appear in Petra'sDecember 31, 2023, consolidated financial statements?b. If the carrying amount of the marketing software was overvalued by $50,000, what amounts for Valery would appear in Petra'sDecember 31, 2023, consolidated financial statements?

CFS are financial statements that combine the financial information of multiple entities within a…

Answered: Problem 6-22 (Algo) (LO 6-2) On…

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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a. 2,000,000b. 1,000,000c. No provision is to be recognized but a disclosure of Php2,000,000 is appropriated. No provision and no disclosure to be made
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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) 2021 Assets Cash and securities $ 4,200 Accounts receivable 15,000 Inventories 16,800 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 18,048 Accruals 10,152 Notes payable 5,000 Total current liabilities $ 33,200 Long-term bonds 10,000 Total liabilities $ 43,200 Common stock 3,864 Retained earnings 12,936 Total common equity $ 16,800 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 66,000 Operating costs except depreciation 61,380 Depreciation…
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Problem 8-2A (Algo) Record notes payable and notes receivable (LO8-2) Precision Cestparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.4 million cash on October 1, 2024, to provide working capital for anticipated expension. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 2 Required 3…
à Levidia - Levidia.ch m Acc III-June 23 i :30 Mc Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 2023 Mar. 1 Paid $69,980 to purchase a $69,000, two-year, 9.5% bond payable of Action Corporation dated March 1. There was a $85 transaction fee included in the above-noted payment amount. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Bought 2,600 common shares of Brandon Motors at $26.00. There was a $85 transaction fee included in the above-noted payment amount. Apr. 16 May 2 Paid $50,968 to purchase a five-year, 7.00 %, $52,000 bond payable of Collingwood Corporation. There was a $85 transaction fee included in the above-noted payment amount. Interest is paid…
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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) 2021 Assets Cash and securities $ 6,000 Accounts receivable 15,000 Inventories 15,000 Total current assets $ 36,000 Net plant and equipment 24,000 Total assets $ 60,000 Liabilities and Equity Accounts payable $ 18,090 Accruals 8,910 Notes payable 6,000 Total current liabilities $ 33,000 Long-term bonds 12,000 Total liabilities $ 45,000 Common stock 4,050 Retained earnings 10,950 Total common equity $ 15,000 Total liabilities and equity $ 60,000 Income Statement (Millions of $) 2021 Net sales $ 90,000 Operating costs except depreciation 83,700 Depreciation…
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#21 The trustee for John Corp. prepares a statement of affairs which shows that unsecured creditors whose claims total P540,000 may expect to receive approximately P405,000 if assets are sold for the benefit of creditors. Danielle Corp. holds a note for P22,500 on which interest of P1,350 is accrued, property with a book value of P18,000 and a realizable amount of P27,000 is pledged on the note Randolph, an employee is owed P6,750 for his salary Baltimore Corp. holds a note of P54,000 on which interest of P2,700 is accrued, securities with a book value of P58,500 and a realizable amount P45,000 is pledged on the note Nick Corp. holds a note for P9,000 on which interest of P500 is accrued, nothing has been pledged for the note How much may each of the following creditors receive? Group of answer choices P23,850; P6,750; P53,775; P7,125 P27,000; P6,750; P53,775; P0 P23,850; P6,750; P56,700; P7,125 P27,000; P6,750; P56,700; P0
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