Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 5, Problem 28P
To determine
Determine balances for the following items:
- Sales
- Cost of Goods Sold
- Operating Expenses
- Dividend income
- Net Income Attributable to Non-controlling Interest
- Inventory
- Non-controlling Interest in Subsidiary, 12/31/18
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ProForm acquired 70 percent of ClipRite on June 30, 2017, for
$910,000 in cash. Based on ClipRite's acquisition-date fair value,
an unrecorded intangible of $400,000 was recognized and is
being amortized at the rate of $10,000 per year. No goodwill was
recognized in the acquisition.
The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2018
financial statements are as follows:
ProForm
ClipRite
$ (800,000) $ (600,000)
400,000
Sales
Cost of goods sold
Operating expenses
535,000
100,000
100,000
Dividend income
(35,000)
$ (200,000) $ (100,000)
-0-
Net income
$ (1,300,000) $ (850,000)
(100,000)
50,000
Retained earnings, 1/1/18
Net income
(200,000)
Dividends declared
100,000
Retained earnings, 12/31/18
$ (1,400,000) $ (900,000)
$ 400,000
$ 300,000
700,000
Cash and receivables
Inventory ....
Investment in ClipRite.
290,000
910,000
-0-
Fixed assets
1,000,000
600,000
Accumulated depreciation
(300,000)
$ 2,300,000
(200,000)
Totals
$1,400,000
$ (600,000) $…
ProForm acquired 70 percent of ClipRite on June 30, 2017, for $910,000 in cash. Based on Clip- Rite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition.The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2018 financial statements are as follows:ProForm sold ClipRite inventory costing $72,000 during the last six months of 2017 for $120,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $200,000 during 2018 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/18
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows:
ProForm
ClipRite
Sales
$
(800,000
)
$
(600,000
)
Cost of goods sold
535,000
400,000
Operating expenses
100,000
100,000
Dividend income
(35,000
)
0
Net income
$
(200,000
)
$
(100,000
)
Retained earnings, 1/1/21
$
(1,300,000
)
$
(850,000
)
Net income
(200,000
)
(100,000
)
Dividends declared
100,000
50,000
Retained earnings, 12/31/21
$
(1,400,000
)
$
(900,000
)
Cash and receivables
$
400,000
$
300,000
Inventory
290,000
700,000
Investment in ClipRite
910,000
0…
Chapter 5 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Use the same information as in problem (5) except...Ch. 5 - Angela, Inc., holds a 90 percent interest in Corby...Ch. 5 - Prob. 8PCh. 5 - Thomson Corporation owns 70 percent of the...Ch. 5 - Prob. 10PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - What is the consolidated total for inventory at...Ch. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Akron, Inc., owns all outstanding stock of Toledo...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Following are financial statements for Moore...Ch. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 1DYSCh. 5 - Hamilton Hawks Players Association and Mr....
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- ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: *see image ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left. Determine the consolidated balances for the following: SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/21arrow_forwardProForm acquired 70 percent of ClipRite on June 30, 2023, for $910,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (800,000) 535,000 100,000 (35,000) $ (200,000) $ (1,300,000) (200,000) 100,000 $ (1,400,000) $ 400,000 290,000 910,000 1,000,000 (300,000) $ 2,300,000 Sales Cost of goods sold Operating expenses Dividend…arrow_forwardGGGarrow_forward
- ProForm acquired 60 percent of ClipRite on June 30, 2023, for $780,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $560,000 was recognized and is being amortized at the rate of $14,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $520,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 cash and receivables Inventory Investment in ClipRite Fixed assets A32 Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (840,000) 555,000 140,000 (54,000) $ (199,000) Sales Cost of goods sold Operating expenses Dividend income Net income attributable to noncontrolling interest Inventory Noncontrolling Interest in subsidiary, 12/31/24 $ (1,300,000) (199,000) 140,000…arrow_forwardValaarrow_forwardProForm acquired 60 percent of ClipRite on June 30, 2023, for $660,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $550,000 was recognized and is being amortized at the rate of $18,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $440,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables ProForm ClipRite $ (930,000) $ (860,000) 600,000 230,000 (30,000) 465,000 165,000 0 $ (130,000) $ (230,000) $ $ (980,000) (1,700,000) (130,000) (230,000) 230,000 (1,600,000) (1,160,000) 50,000 $ $ $ 530,000 $ 430,000 420,000 830,000 660,000 0 1,200,000 1,250,000 (200,000) (400,000) $ $ 2,610,000 2,110,000 Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities…arrow_forward
- ProForm acquired 60 percent of ClipRite on June 30, 2023, for $600,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $440,000 was recognized and is being amortized at the rate of $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Note: Parentheses indicate a credit balance. ProForm $ (810,000) 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000)…arrow_forwardProForm acquired 60 percent of ClipRite on June 30, 2023, for $600,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded Intangible of $400,000 was recognized and is being amortized at the rate of $11,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $400,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in clipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals ProForm $ (810,000) 540,000 110,000 (36,000) $ (196,000) $ (1,000,000) (196,000) 110,000 $ (1,086,000) $ 410,000 300,000 600,000 1,100,000 (500,000) $ 1,910,000 $ (624,000) (200,000) (1,086,000) $ (1,910,000) ClipRite $ (620,000) 405,000 105,000 $ (110,000) $…arrow_forwardProForm acquired 70 percent of ClipRite on June 30, 2023, for $1,050,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $750,000 was recognized and is being amortized at the rate of $13,000 per year. No goodwill was recognized in the acquisition. The noncontrolling Interest fair value was assessed at $450,000 at the acquisition date. The 2024 financial statements are as follows: Items Sales Cost of goods sold Operating expenses Dividend Income Net income Retained earnings, 1/1/24 Net Income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Cliphite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/24 Totals Proform $ (978,000) 620,000 270,000 (63,000) $ (143,000) $ (2,200,000) (143,000) 270,000 $ (2,873,088) $ 578,888 460,000 1,050,000 1,480,000 (388,000) $ 3,180,000 $ (787,000) (488,088) (2,873,088) $ (3,188,000) Clipkite $ (948,080) 485,000 185,000 $ (278,080)…arrow_forward
- ProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $760,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals Sales Cost of Goods Sold ProForm (900,000) 585,000 200,000 (48,000) $ (163,000) $ $ 500,000 390,000 1,140,000 2,000,000 (700,000) $ 3,330,000 $ (667,000) (400,000) (2,263,000) $ (3,330,000) Sales Cost of goods sold Operating expenses Dividend income Net income…arrow_forwardProForm acquired 60 percent of ClipRite on June 30, 2020, for $1,140,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $15,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $760,000 at the acquisition date. The 2021 financial statements are as follows: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/21 Totals Sales Cost of Goods Sold ProForm ClipRite $ (900,000) $ (800,000) 450,000 585,000 200,000 (48,000) 150,000 0 $ (163,000) $ (200,000) $ (950,000) (200,000) 80,000 $(1,070,000) $ 400,000 800,000 0 $(2,300,000) (163,000) 200,000 $(2,263,000) $ 500,000 390,000…arrow_forwardDomesticarrow_forward
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