Form DOn Jan. 1, 2021, Pop acquired 80% interest in Son for SAR 5,000,000, when Son's stockholders'equity consisted of SAR 2,000,000 capital stock, SAR 1,000,000 additional paid in capital, and SAR800,000 retained earnings. On the date that Son became a subsidiary of Pop, Son's assets andliabilities book values and fair values are the same except for the following:Identifiable assets and liabilitiesOvervalued Land, still in use by SonOvervalued Note payable, retired in 2021Overvalued Equipment, has 5 years remaining useful lifeIn thousand230220400Son reports SAR 1,055,000 net income for 2021 and declared dividends of SAR 300,000 Dec. 1,2021.During 2021 Pop Corporation (parent) sells merchandise that it purchased for SAR 300,000 to SonCorporation (subsidiary) for SAR 600,000 and that Son Corporation sold 40 percent of themerchandise to outsiders during the year for SAR 800,000. Also, Pop sold a land that cost SAR1,000,000 to Son for SAR 1,300,000. Son still uses the land. Summary Pop and Son's accountbalances at December 31, 2021, follow (in thousands): Form DOn Jan. 1, 2021, Pop acquired 80% interest in Son for SAR 5,000,000, when Son's stockholders'equity consisted of SAR 2,000,000 capital stock, SAR 1,000,000 additional paid in capital, and SAR800,000 retained earnings. On the date that Son became a subsidiary of Pop, Son's assets andliabilities book values and fair values are the same except for the following:Identifiable assets and liabilitiesOvervalued Land, still in use by SonOvervalued Note payable, retired in 2021Overvalued Equipment, has 5 years remaining useful lifeIn thousand230220400Son reports SAR 1,055,000 net income for 2021 and declared dividends of SAR 300,000 Dec. 1,2021.During 2021 Pop Corporation (parent) sells merchandise that it purchased for SAR 300,000 to SonCorporation (subsidiary) for SAR 600,000 and that Son Corporation sold 40 percent of themerchandise to outsiders during the year for SAR 800,000. Also, Pop sold a land that cost SAR1,000,000 to Son for SAR 1,300,000. Son still uses the land. Summary Pop and Son's accountbalances at December 31, 2021, follow (in thousands):

Adjustment for Excess Amortization of Overvalued Assets:Excess amortization for the overvalued land:…

REQUIRED Prepare workpapers to consolidate the financial statements of Pop Corporation and Subsidiary at and for the year ended December 31, 2021. (Support your answer with proper calculations and related workpaper entries) ** note that you need to make some preliminary computation and find some balances.

REQUIRED Prepare workpapers to consolidate the financial statements of Pop Corporation and Subsidiary at and for the year ended December 31, 2021. (Support your answer with proper calculations and related workpaper entries) ** note that you need to make some preliminary computation and find some balances.

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

You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2024. Your accounting group provided you the following Information on the company's debt Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. On July 1, 2024, Moonlight Bay Issued bonds with a face amount of $2,700,000. The bonds mature in 15 years and Interest of 11% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield Investors 12%. Moonlight Bay records Interest at the effective rate. 2. At December 31, 2023, Moonlight Bay had a 10% Installment note payable to Third Mercantile Bank with a balance of $700,000. The annual payment is $160,000, payable each June 30. 3. On January 1, 2024, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $85,000 beginning January 1, 2024.…
In light of the full disclosure principle, investors and creditors need to know the balances for assets, liabilities, and equity as well as the accounting policies adopted by management to measure the items reported in the balance sheet. Instructions If your school has a subscription to the FASB Codification, go to http://aaahq.org/asclogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses. (a) Identify the literature that addresses the disclosure of accounting policies. (b) How are accounting policies defined in the literature? (c) What are the three scenarios that would result in detailed disclosure of the accounting methods used? (d) What are some examples of common disclosures that are required under this statement?
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2024. Your accounting group provided you the following information on the company's debt:Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)1. On July 1, 2024, Moonlight Bay issued bonds with a face amount of $ 1,000,000. The bonds mature in 20 years and interest of 7% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 8% Moonlight Bay records interest at the effective rate.2. At December 31, 2023, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $580,000. The annual payment is $100, 000, payable each June 30.3. On January 1, 2024, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $65,000beginning January 1, 2024.…
Please calculate the debts to assets ratio for the years 2022 and 2021, also please show your work.
Sweet home Inc., includes the following selected accounts in its general ledger at December 31, screenshot attacahed thanks fas fakope
Please analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimi
Based on the Republic Bank TT, an investment holding company, answer the following questions below using the following link below for help. Provide a detail explanation and examples to the answers. https://www.republictt.com/pdfs/annual- reports/RFHL-Annual-Report-2022.pdf 1. Assess the company's working capital position by analyzing its current assets and liabilities using common methods and measures( using the figures in the financial statements) 2. Evaluate the efficiency of the company's working capital management strategies, including inventory management, accounts receivable, and accounts payable( using figures from the financial statements) 3. Based on the assessment and evaluation above, provide ten recommendations for improving the company's working capital management practices.
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company’s interest expense for the year ended December 31, 2024. Your accounting group provided you the following information on the company's debt: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) On July 1, 2024, Moonlight Bay issued bonds with a face amount of $2,400,000. The bonds mature in 20 years and interest of 13% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 14%. Moonlight Bay records interest at the effective rate. At December 31, 2023, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $680,000. The annual payment is $150,000, payable each June 30. On January 1, 2024, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $75,000 beginning January 1, 2024.…
Classified Balance Sheet OBJECTIVE Jerrison Company operates a wholesale hardware business. Thefollowing balance sheet accounts and balances are available for Jerrisonat December 31, 2019. Required:1. Prepare a classified balance sheet for Jerrison at December 31, 2019. 2. Compute Jerrison's working capital and current ratio at December 31,2019. 3. CONCEPTUAL CONNECTION If Jerrison's management is concernedthat a large portion of its inventory is obsolete and cannot be sold, howwill Jerrison's liquidity be affected?
Evaluate the company’s latest annual financial statements (balance sheet, income statement, and cash flow statement) and comment on the company's financial performance and position. In your response, use the requirements of IAS 1 as a guide.b) Identify and discuss key accounting principles and standards applied in the company’s financial reporting process indicating their reasons for choosing these and how they were applied. Comment briefly on the appropriateness of the choices made given the company’s industry, location and type (e.g. MNC, regional conglomerate, etc.)c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.
1.32. Creating Balance Sheets and Income Statements. Using the information in the below table, prepare a classified balance sheet for Erie Company as of December 31, 2019 and December 31, 2020, along with multi-step income statements for the years then ended
Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Buffalo CorporationBalance SheetDecember 31, 2020 Assets Liabilities Current assets $1,899,000 Current liabilities $956,000 Other assets 5,138,660 Long-term liabilities 1,471,000 Stockholders’ equity 4,610,660 $7,037,660 $7,037,660 An analysis of current assets discloses the following. Cash (restricted in the amount of $298,000 for plant expansion) $582,000 Investments in land 187,000 Accounts receivable less allowance of $30,000 487,000 Inventories (LIFO flow assumption) 643,000 $1,899,000 Other assets include: Prepaid expenses $62,000 Plant…