Item Nos. 13 and 14 are based on the following information:The following are the assets and liabilities of Tee, Pak, and Longpartnership on April 30, 200B prior to liquidation:CashP 25,000Liabilities.P 52,000Other Assets180,00040,000Tee Capital (40%)Pak Capital (40%)65,000Long Capital (20%)48,000P 205,000P 205,000The first sale of noncash assets having a carrying amount of P 90,000realized P 50,000.13. The amount of cash each partner should receive in the first installment is:a. Tee, P 0; Pak, P 0; Long, P 23,000.b. Tee, P O; Pak, P 5,000; Long, P 18,000.c. Tee, P 12,000; Pak, P 13,000; Long, P 18,000.C.d. Tee, P 27,000; Pak, P 5,000; Long, P 18,000.14. If P 3,000 cash is withheld for future liquidation expenses, how much cashshould Long receive?a. P 21,000.c.P 17,000.b. P 20,000.d. P 3,000.

Under piecemeal distribution, payments are made to creditors and partners as and when assets are…

The following are the assets and liabilities of Tee, Pak, and Long artnership on April 30, 200B prior to liquidation: sh. P 25,000 Liabilities P 52,000 ther Assets 180,000 40,000 Tee Capital (40%) Pak Capital (40%) 65,000 Long Capital (20%) - 48,000 P 205,000 P 205,000

The following are the assets and liabilities of Tee, Pak, and Long artnership on April 30, 200B prior to liquidation: sh. P 25,000 Liabilities P 52,000 ther Assets 180,000 40,000 Tee Capital (40%) Pak Capital (40%) 65,000 Long Capital (20%) - 48,000 P 205,000 P 205,000

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

8. Kopi Company acquired all of the outstanding ordinary shares of an acquiree paying P9,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquiree were: Carrying amount Fair Value Accounts receivable P 1,500,000 Inventory 4,800,000 Land 7,500,000 Property and Equipment 2,500,000 Accounts payable 2,500,000 Bonds Payable 1,900,000 P 1,200,000 3,000,000 5,000,000 2,000,000 2,500,000 1,500,000 What amount should be recognized as goodwill or negative goodwill? a. P 1,900,000 b. P-1,900,000 c. P 2,900,000 d. P-2,900,000
On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky Company at a cost of P1,080,000. On that date, Sedrosky Company had P600,000 worth of ordinary shares and P750,000 worth of accumulated profits. For 20x2, Sedrosky Company reported income of P270,000 and paid dividends of P90,000. All of the assets and liabilities of Sedrosky Company are at fair market value. On December 31, 20x2, Pfieter Company sold equipment to Sedrosky Company for P112,500 that had a cost of P67,500. The equipment is expected to have a useful life of 10 years from this date. For the year 20x2, Pfieter Company reported income from its own operations in the amount of P300,000, which included the gain of P45,000 on equipment sold to Sedrosky Company. What is the Non-controlling Interest in Net Assets of Subsidiary as of December 31, 20x2?
Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January 1, Year 4, for $744,000. At that date, the fair value of the non-controlling Interest was $186,000. Corner Brook's balance sheet contained the following amounts at the time of the combination: Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets 66,000 140,000 40,000 Accounts Payable $ 106,000 Bonds Payable 610,000 950,000 Common Shares ($10 par value) Retained Earnings 400,000 530,000 450,000 $1,646,000 $ 1,646,000 Total Liabilities & Equities During each of the next three years, Corner Brook reported net income of $120,000 and paid dividends of $60,000. On January 1, Year 6, Johannes sold 8,800 of the Corner Brook shares for $260,000 in cash. Johannes used the equity method in accounting for its ownership of Corner Brook. Required: (a) Compute the balance in the Investment account reported by Johannes on January 1, Year 6, before its sale of shares. (Omit $ sign…
On 1 July 2021 Collaroy Ltd acquired the following assets and liabilities from Bilgola Ltd Carrying amount Fair value Land $500,000 550,000 Plant ( cost $400,000) 480,000 460,000 Inventory 65,000 63,800 Cash 15,000 15,000 Accounts Receivable 40,000 38,600 Accounts Payable (20,000) (20,000) Loans (110,000) (110,000) In exchange for these assets and liabilities Collaroy issued 160,000 shares at $1.70 per share . At 1 July 2021 these shares had a fair value at $7.35 per share Required Prepare the journal entry for the above
N 1 Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required: Prepare the consolidation worksheet entries for Dwani Ltd’s group on 30 June 2022 assuming the consideration transferred was $500 000.
On January 1, 20X1, Hermione, Inc., an SME, paid cash of P600,000 for all the outstanding shares of Weasley Company. The carrying value of the assets and liabilities of Weasley on January 1, 20X1 follows:Accounts Receivable 90,000Inventory 180,000Property & Equipment (net of Accumulated Depreciation of P220,000) 320,000Goodwill 100,000Liabilities 120,000Net income of Hemione and Weasley for 20X1 amounted to P200,000 and P80,000, respectively. Hermione received dividend of P25,000 from Weasley during 20X1. The Property & Equipment has original useful life of 10 years and was already held for 4 years as of date of acquisition.How much…
POP Inc is to be liquidated and has the following liabilities: income taxes payable 42,805 wages payable 157,320 accounts payable (including customers credit balances of 50,000) 1,380,000 bonds payable(including interests of 50,000) 1,250,000 notes payable( excluding interests of 20,000) 670,000 The company's asset is composed of the following at their book values: cash 100,000 accounts receivable(including customer's credit balances mentioned above) 500,000 inventory (used as security for the notes) 330,000 land and building (used as security for the bonds) 1,500,000 comparing to their net realizable values, the followinghas been determined: - 20% of the accounts receivable is worthless - 1/3 of the inventory owned by the company is worthless - land and building is undervalued by 500,000 How much will be recovered by creditors from the account payable? Round off answers to two decimal places
L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
7
On 1 July 2022, Susan Ltd took control of the assets and liabilities of Adam Ltd. At this date the statement of financial position of Adam Ltd was as follows: Carrying amount Fair value Machinery $60,000 $87,000 Fixtures & Fittings 80,000 88,000 Vehicles 55,000 55,000 Current Assets 30,000 32,000 Current Liabilities (36,000) (38,000) Total Net assets 189,000 Share capital (100 000 shares) 100,000 General reserve 40,000 Retained earnings 49,000 Total Equity 189,000 Susan Ltd agreed to: (i) pay the shareholders of Adam Ltd one share in Susan Ltd for every two shares held in Adam Ltd. Shares in Susan Ltd have a fair value of $2.00 per share. The costs of issuing the shares by Susan Ltd costed $2,800 (ii) pay the shareholders of Adam Ltd $1 in cash for each share held in Adam Ltd. On 1 July 2022, Adam Ltd is currently being sued by a previous customer. The expected damage is $100,000. Lawyers estimate that there is a 10% chance of losing the case.…
H