The following book and fair values were available for Beech Company as of June 1ItemsInventoryLandBook Value$494,000Fair Value$ 449,500763,5001,060,500Buildings1,975,0002,303,500Trademarks0Accounts payable(118,000)859,500(118,000)Common stock(2,000,000)Additional paid-in capitalRetained earnings, 1/1(500,000)(427,000)(486,000)RevenuesExpenses298,500Alder pays cash of $4,420,000 to acquire Beech. No stock is issued and Alder pays $49,000 for legal fees to complete thetransaction.Required:Prepare Alder's journal entries to record its acquisition of Beech.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Answer is not complete.NoTransaction.1General JournalInventoryLand22BuildingsTrademarksAccounts payableCashProfessional services expenseCash00DebitCredit449,5001.060.5002.303,500859,500118,0004,420,00049,00049.000

Preparation of journal entries. Account Titles and ExplanationsDebitCredit1Inventory (given)$449,500…

Answered: The following book and fair values were…

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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ABC Company provided the following information for the year ended December 31, 2020: Share Capital P1,000,000 Loss from inventory write-down 150,000 Share premium 1,500,000 Retained earnings, January 1 550,000 Dividends paid 450,000 Loss on sale of trading securities 50,000 Additional information: During the current year ABCCompany issued additional 20,000 shares, 25 par value, for P1,000,000. On October 1, ABCCompany approved a formal plan to discontinue and sell a business segment. The segment had income of P2,000,000 from January 1 to September 30. On December 31, the carrying amount of the assets of the segment was P4,000,000 and the fair value less cost of disposal was P3,000,000. The income tax rate is 30% Required: Prepare statement of changes in shareholders equity
Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What is the carrying amount of the inventory on December 31, 2020? - What is the amount to be recognized in profit or loss for the distribution of the non- cash dividend?
The following information was taken from the accounting records of ATLANTA Company for the year ended December 31, 2021: Net income during the year, P2,250,000Proceeds from the issuance of preference shares, P4,000,000Dividends paid on preference shares, P400,000Bonds payable converted to ordinary shares, P2,000,000Payment for purchase of machinery, P500,000Proceeds from sale of plant building, P1,200,000Retirement of bonds payable at face value, P2,500,0002% bonus issue on ordinary shares, P300,000Purchase of ordinary treasury shares, P120,000Payment for the purchase of debt securities at amortized cost, P450,000Gain on sale of plant building, P200,000Depreciation expense, P188,000Doubtful accounts expense, P87,000Increase in accounts receivable, P325,000Decrease in merchandise inventory, P129,000Increase in investments in equity securities at FVTPL, P440,000Increase in accounts payable, P90,000Decrease in accrued expenses, P225,000Increase in income tax payable, P117,000 How much is…
Required: Give the journal entries to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under a. memorandum entry method, b.journal entry method The following are the transactions of JEYA Inc. for the month of January 2020. January 5 officially formed the corporation with 5,000,000 authorized share capital at P10 par value. January 6 the incorporators subscribed and paid in full 1,000,000 shares. January 8 issued 500,000 shares to an investors for P15 per share. January 10 received subscription from an investor for 200,000 shares at P20 per share. January 15 issued 5,000 shares for incorporation services rendered by a consultancy firm. The service is worth P100,000. January 20 issued 500,000 shares for P16 per share. January 24 collected the payment for subscription on January 10. January 27 received subscription for 1,000,000 shares at P11 per share receiving 50% advanced payment. January 30 issued 2,000…
Cost and fair value data for the trading debt securities of Ivanhoe Company at December 31, 2022, are $64,220 and $63,810, respectively. (a1) Show the financial statement presentation of the trading securities. Ivanhoe Company (Partial) Balance Sheet A
Pina Colada Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 50,500 common shares of Yuen Inc. $313,100 $202,000 3,800 preferred shares of Monty Ltd. 1,650 common shares of Oakwood Inc. 144,400 152,000 148,500 147,675 On October 8, 2023, the Yuen shares were sold for $6.20 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $44.40 per share. Pina Colada pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,950; Patriot $118,250; and Oakwood $167,475. Pina Colada prepares financial statements every quarter. (a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023. (Credit account titles…
Flounder Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2023, the end of the company's third quarter: Investment Cost Fair Value 47,500 common shares of Yuen Inc. $266,000 $190,000 3,200 preferred shares of Monty Ltd. 121,600 128,000 1,350 common shares of Oakwood Inc. 121,500 120,825 On October 8, 2023, the Yuen shares were sold for $5.60 per share. On November 16, 2023, 3,000 common shares of Patriot Corp. were purchased at $43.80 per share. Flounder pays a 1% commission on purchases and sales of all securities. At the end of the fourth quarter, on December 31, 2023, the fair values of the shares held were as follows: Monty $102,050; Patriot $116,750; and Oakwood $137,025. Flounder prepares financial statements every quarter. (a) Your answer is partially correct. Prepare the journal entries to record the sale, purchase, and adjusting entries related to the portfolio for the fourth quarter of 2023.…
The following data were taken from the statement of financial position accounts of Cha-Cha Corporation on Dec 31, 2019. Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000 Share Premium - Ordinary $ 75,000 Retained Earnings $ 420,000 Prepare the required Journal Entries for the following unrelated items! 1. A 5% share dividend is declared and distributed at a time when the market price of the shares is $39 per share. 2. The par value of the ordinary shares is reduced to $2 with a 5-for-1 share split. 3. A dividend is declared January 10, 2020 and paid January 28, 2020, in bonds held as an investment. The bonds have a book value of $ 0f $45,000 and a fair value $ 62,500.
The December 31, 2018, balance sheet of Whelan, Inc, showed long-term debt of $1,385,000, $137.000 in the common stock account, and $2,620,000 in the adoitional paid-in surplus account. The Deocember 31. 2019, balance sheet showed long-term debt of $1.550.000, $147,000 in the common stock account and $2,920,000 in the additional paid-in surplus account. The 2019 income stalement showed an interest expense of $92,500 and the company paid oul $142.000 in cash dividends during 2019. The fim's net capital spending for 2019 was $930,000, and the fim reduced its net working capital investment by $122.000. What was the fem's 2019 operating cash fow, or OCF7 (A nogative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg. 1,234,567.) Operating cash flow
Prior to subscription of Color, the accounting equation of Rado’s corporation is:Asset=Liabilities+Equity P1,000,000 P 250,000 P 750,000 Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be Total AssetsTotal LiabilitiesStockholders equity a.P1,250,000P250,000P1,000,000 b.P1,250,000P500,000P 750,000 c.P1,000,000P250,000P 750,000 d.P1,000,000P500,000P 750000
MCG Company's adjusted trial balance at December 31, 2021, includes the following: Ordinary share capital, P5 par P360,000 Share premium 480,000 Treasury shares, at cost 30,000 Cumulative net unrealized loss on equity securities at fair value through other comprehensive income 12,000 Retained appropriated for contingencies 90,000 Unappropriated retained earnings 120,000 What amount should MCG report as total shareholders' equity in its Deember 31, 2021 statement of financial position? (A) P1,068,000 B P1,008,000 (c) P1,032,000 D) P1,092,000
As of December 31, 2021, Halaga Corporation reported the following items in its balance sheet: Cash- P520,000 Receivables- P240,000 Inventory- P350,000 Equipment- P850,000 Accounts payable- P325,650 Short-term notes payable- P524,500 Long-term debt- P1,049,850 Weighted average of outstanding shares in 2021- P250,000 Halaga Corporation contracted a third-party appraiser which has determined that the replacement value of its assets. This resulted to P14.22 calculation as its replacement value per share of the company.Based on the report of the appraiser, the property and plant have replacement cost of 125% of its reported value. On the other hand, the equipment only commands replacement cost of 70% of its value. According to the appraiser, the equipment was designed using an old technology, thus, the lower replacement cost. Other assets and liabilities are valued fairly.How much is the book value per share of Halaga Corporation as of December 31, 2021? a. Php 0.24 b. Php 14.22 c.…

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