FINANCIAL ACCOUNTING ETEXT CARD
10th Edition
ISBN: 9781260918373
Author: Libby
Publisher: INTER MCG
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Chapter 4, Problem 1ME
To determine
Prepare an adjusted
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On May 31, 2026, Oriole Company paid $3,290,000 to acquire all of the common stock of Pharoah Corporation, which became a
division of Oriole. Pharoah reported the following balance sheet at the time of the acquisition:
Current assets
$846,000
Current liabilities
$564,000
Noncurrent assets
2,538,000
Long-term liabilities
470,000
Stockholder's equity
2,350,000
Total assets
$3,384,000
Total liabilities and stockholder's equity
$3,384,000
It was determined at the date of the purchase that the fair value of the identifiable net assets of Pharoah was $2,914,000. At
December 31, 2026, Pharoah reports the following balance sheet information:
Current assets
$752,000
Noncurrent assets (including goodwill recognized in purchase)
2,256,000
Current liabilities
(658,000)
Long-term liabilities
(470,000)
Net assets
$1,880,000
It is determined that the fair value of the Pharoah division is $2,068,000.
On May 31, 2026, Oriole Company paid $3,290,000 to acquire all of the common stock of Pharoah Corporation, which became a
division of Oriole. Pharoah reported the following balance sheet at the time of the acquisition:
Current assets
$846,000
Current liabilities
$564,000
Noncurrent assets
2,538,000
Long-term liabilities
470,000
Stockholder's equity
2,350,000
Total assets
$3,384,000
Total liabilities and stockholder's equity
$3,384,000
It was determined at the date of the purchase that the fair value of the identifiable net assets of Pharoah was $2,914,000. At
December 31, 2026, Pharoah reports the following balance sheet information:
Current assets
$752,000
Noncurrent assets (including goodwill recognized in purchase)
2,256,000
Current liabilities
(658,000)
Long-term liabilities
(470,000)
Net assets
$1,880,000
It is determined that the fair value of the Pharoah division is $2,068,000.
The following transactions involving intangible assets of Oriole Corporation occurred on or near December 31, 2025.
1.) Oriole paid Grand Company $520,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Oriole is in business.
2.) Oriole spent $654,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful.
3.) In January 2026, Oriole's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Oriole for 10 years.
4.) Oriole incurred $168,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029.
5.) Oriole incurred $446,400 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of…
Chapter 4 Solutions
FINANCIAL ACCOUNTING ETEXT CARD
Ch. 4 - Prob. 1QCh. 4 - 2. List the four types of adjusting entries, and...Ch. 4 - 3. What is a contra-asset? Give an example of...Ch. 4 - Prob. 4QCh. 4 - 5. What is the equation for each of the following...Ch. 4 - Prob. 6QCh. 4 - 7. How is earnings per share computed and...Ch. 4 - 8. How is the total asset turnover ratio computed...Ch. 4 - 9. What are the purposes for closing the books?
Ch. 4 - 10. Differentiate among (a) permanent, (b)...
Ch. 4 - 11. Explain why the income statement accounts are...Ch. 4 - 12. What is a post-closing trial balance? Is it a...Ch. 4 - 1. Which of the following accounts would not...Ch. 4 - 2. Which account is least likely to appear in an...Ch. 4 - On October 1, 2020, the $12,000 premium on a...Ch. 4 - On June 1, 2019, Oakcrest Company signed a...Ch. 4 - 5. Failure to make an adjusting entry to recognize...Ch. 4 - 6. An adjusted trial balance
Shows the ending...Ch. 4 - 7. JJ Company owns a building. Which of the...Ch. 4 - 8. At the beginning of the current year. Donna...Ch. 4 - 9. According to GAAP, what ratio must be reported...Ch. 4 - 10. If a company is successful in acquiring...Ch. 4 - Preparing a Trial Balance
Hagadorn Company has the...Ch. 4 - Matching Definitions with Terms
Match each...Ch. 4 - Matching Definitions with Terms
Match each...Ch. 4 - In each of the following transactions (a) through...Ch. 4 - For each of the transactions in M4-4, indicate the...Ch. 4 - In each of the following transactions (a) through...Ch. 4 - For each of the transactions in M4-6, indicate the...Ch. 4 - Prob. 8MECh. 4 - Prob. 9MECh. 4 - Prob. 10MECh. 4 - Indicate how the adjustments below affect the...Ch. 4 - Prob. 12MECh. 4 - Refer to the adjusted trial balance for Catena’s...Ch. 4 - Prob. 1ECh. 4 - Identifying Adjusting Entries from Unadjusted...Ch. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - A+T Williamson Company is making adjusting entries...Ch. 4 - Gauge Construction Company is making adjusting...Ch. 4 - Refer to E4-3 and E4-5.
Required:
For each of the...Ch. 4 - Trotman’s Variety Store is completing the...Ch. 4 - Johnson’s Boat Yard, Inc., repairs, stores, and...Ch. 4 - Refer to E4-8.
Required:
For each of the...Ch. 4 - Refer to E4-9.
Required:
For each of the...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Gordon Company started operations on January 1 of...Ch. 4 - Note 1: On April 1 of the current year, Warren...Ch. 4 - Campbell Soup Company is a manufacturer and...Ch. 4 - Quinlan-Cohen, Inc., publishers of movie and song...Ch. 4 - On December 31, Fawzi Company prepared an income...Ch. 4 - Recording the Effects of Adjusting Entries and...Ch. 4 - Prob. 19ECh. 4 - Green Valley Company prepared the following trial...Ch. 4 - Prob. 21ECh. 4 - Refer to E4-20.
Required:
What are the purposes...Ch. 4 - Prob. 1PCh. 4 - All of the current year’s entries for Zimmerman...Ch. 4 - S. Miller Towing Company provides hauling and...Ch. 4 - Refer to the information regarding Zimmerman...Ch. 4 - Refer to the information regarding S. Miller...Ch. 4 - Ramirez Company is completing the information...Ch. 4 - Prob. 7PCh. 4 - Prob. 1APCh. 4 - Hannah Company’s annual accounting year ends on...Ch. 4 - Prob. 3APCh. 4 - Refer to the information regarding Hannah Company...Ch. 4 - Refer to the information regarding Bill’s Catering...Ch. 4 - Prob. 6APCh. 4 - Prob. 7APCh. 4 -
Adjusting Accounts at Year-End (the Accounting...Ch. 4 - Prob. 1COMPCh. 4 - Prob. 2COMPCh. 4 - Refer to the financial statements of American...Ch. 4 - Refer to the financial statements of Express, Inc....Ch. 4 - Prob. 3CPCh. 4 - Prob. 4CPCh. 4 - Prob. 5CPCh. 4 - Prob. 6CPCh. 4 - Prob. 7CPCh. 4 - Prob. 8CPCh. 4 - You are the regional sales manager for Lauren...
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- Reffering to fair value of an asset, division, or organization, What exactly is fair value and how is it assessed?arrow_forwardThe following transactions involving intangible assets of Oriole Corporation occurred on or near December 31, 2025. 1.) Oriole paid Grand Company $520,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Oriole is in business. 2.) Oriole spent $654,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3.) In January 2026, Oriole's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Oriole for 10 years. 4.) Oriole incurred $168,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029. Oriole incurred 5.) $446,400 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of…arrow_forwardNonearrow_forward
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