At the beginning of the year, Fish Corporation acquired 10% of Chips Company ordinary shares for KD 250,000. Chips Company reported net income for the year of KD 75,000 and paid KD 25,000 cash dividends during the year. The balance of the Share Investments account on the books of Fish Corporation at the end of the year should be a KD 250.000
Q: pay
A: Internal rate of return is that rate where the net present value of a project is zero. That is where…
Q: company uses direct labor hours as its overhead allocation base. Its standard amount per allocation…
A: Controllable variance is flexible budget variances. It is the difference between the actual overhead…
Q: A company is setting its direct materials and direct labor standards for its leading product. Direct…
A: Variance refers to the change between the expected value and the actual result. This term is usually…
Q: The chart of accounts for Corwin Computer Services includes the following: Account Number Account…
A: Post reference number is a number which is used to identify general ledger accounts. This number is…
Q: The following information (in $ millions) comes from the Annual Report of Saratoga Springs Company…
A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…
Q: Three major segments of the transportation industry are motor carriers such as Atlantic Worldwide,…
A: Asset turnover is calculated by sales revenue by average total assets. The average total assets is…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Sendelbach Corporation is a U.S.-based organization with operations throughout the world. One of its…
A: When the subsidiary company is having branch offices or operations in a country other than the…
Q: The following information is available for Quality Book Sales' sales on account and accounts…
A: The credit balance of the provision for non-collectible accounts is standard. The difference between…
Q: Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2023 drove a…
A: Deduction means a decrease in the taxable income of the taxpayer. Deductions are provided against…
Q: Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at…
A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…
Q: The employees of Ethereal Bank are paid on a semimonthly basis. All employees are single. There are…
A: Federal payroll taxes are collected in the United States and are known as FICA. FICA is a payroll…
Q: The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall…
A: Hi studentSince there are multiple subparts asked, we will answer only first three subparts.Working…
Q: Funtime Gadgets buys $137,200 worth of merchandise from Gadget Wareho edit terms of 2/10, n/30. 2…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Yancey Productions is a film studio that uses job-order costing. The company's direct materials…
A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…
Q: he Taxpayer Advocate Service (TAS) can help taxpayers with what type of assistance? As a first step,…
A: A taxpayer is an individual, reality, or association that's legally obligated to pay levies to a…
Q: Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two…
A: The overhead allocation is a method of allocating indirect costs to the goods produced. It can be…
Q: Crane Company sells one product and uses a perpetual inventory system. The beginning inventory…
A: Ending inventory units is the number of units remained in inventory at the end of period after…
Q: ABC Company has set the following standards for one unit of product: Direct materials: 0.5 pounds @…
A: The variance is the difference between the actual and standard cost of production data. The variance…
Q: A direct material standard cost is? The cost of direct materials that should be incurred to…
A: Answer:- Direct materials meaning:- A manufactured product's constituent parts are generally known…
Q: Livermore Corporation acquired 90 percent of Tiger Corporation's voting stock on January 1,20X2, for…
A: Net income from subsidiary includes proportionate share of net income of subsidiary which is…
Q: On January 1, 2021, Gundy Enterprises purchases an office building for $184,000, paying $44,000 down…
A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…
Q: Blooming Flower Company was started in Year 1 when it acquired $60,900 cash from the issue of common…
A: Balance sheet is a financial statement that includes assets, liabilities and stockholder's…
Q: Bonds Payable Transactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1,…
A: Bonds are instrument issued by company acknowledging the debt raised by company. It is a liability…
Q: Explain how a company's Income Statement is affected by treasury stock transactions?
A: An income statement, also known as a profit and loss statement( P&L), is a financial statement…
Q: Use the following income statement along with the accompanying additional information to prepare a…
A: A budget is a plan which outlines the income and expenses of the company for a specific time period.…
Q: The Tennis Times (TTT) is a publisher of magazines. Its accounting policy for subscriptions follows:…
A: The accounting equation must always balance, which means that the overall value of assets must…
Q: c. Suppose that Renee's revenue includes $5 million of business interest income. What is the maximum…
A: Taxable Income in accounting refers to the amount of income used to calculate how much tax an…
Q: Baker Company manufactures three products: A, B and C. The selling price, variable costs and…
A: Contribution margin per unit is the difference between the selling price per unit and variable cost…
Q: Costello Corporation reported pretax book income of $500,700. During the current year, the reserve…
A: Deferred tax expenditure, which is recorded on the income statement, is an important component of a…
Q: Thomas C. Company holds a 15% equity investment in Kayak Zone and treats it as a passive investment.…
A: An associate company is a company that holds a minimum of 20% of shares in another company. If the…
Q: How are you determining income before income tax answer of $166,000?
A: Income before income tax means the amount of money earned by the entity before deducting the income…
Q: On January 1, 2022, Swifty Company purchased the following two machines for use in its production…
A: All costs incurred from the point of purchase to the installation of equipment are to be…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: This question is related to non-monetary exchange Accounting for non-monetary interactions,…
Q: What is Nancy's basis in the equipment?
A: A partner's basis for distributing property from a partnership is generally the partnership's…
Q: Compute the FICA taxes for the employ
A: Note 1] FICA taxes are deducted from each paycheck of employees, with equivalent contribution from…
Q: Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces…
A: Variable cost depends upon the production of goods or services that is increment of sales increases…
Q: Assume that Walmart anticipates inflation in future periods. In a period of rising prices, which…
A: Net income is the amount of money earned by the entity after deducting the expenses from the…
Q: Crane Flight Academy acquired a new site for its training operations. The company was able to find a…
A: Improvements done to a piece of land with the intention of increasing its value, usability, or…
Q: Colorado Mining paid $614,400 to acquire a mine with 820,000 tons of coal reserves. The horizontal…
A: Depletion means the fall in value of reserve when some reserves has been extracted from mines.…
Q: Acton Company has two products: A and B. The annual production and sales of Product A is 800 units…
A: Activity Based Costing Refers To The Allocation Of Costs To Different Heads Or Activities.Activity…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The…
A: Net operating income is the amount of income earned by the entity after deducting the operating…
Q: Beatrice Company estimates that unit sales of its lawn chairs will be 7.600 in October 8,800 in…
A: Sales revenue is the amount of revenue generated from sale of goods to customers. It is calculated…
Q: Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works…
A: The contribution margin is the amount of money left over after variable expenditures, whereas the…
Q: Which of the following statements is true about managerial O It must be prepared using generally…
A: Managerial accounting also known as management accounting, is the process of identifying, measuring,…
Q: 1. Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two…
A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…
Q: Completed and transferred out Ending Work-in-Process Cost per EUP sum nary rep Direct Materials…
A: The total cost is calculated as the number of units multiplied by cost per equivalent unit. The…
Q: Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 12,800 cases in July.…
A: The absorption costing defers the fixed manufacturing expenses included in the ending inventory to…
Q: c. O The accumulated foreign currency translation adjustment is not included in determining the…
A: A disposal group classified as held for sale represents assets and liabilities to be sold together…
Step by step
Solved in 3 steps
- On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company for $450,000. For the year ended December 31, Dennehy reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. On December 31, the carrying value of Matthews' investment in Dennehy under the equity method is O $450,000. O $456,000. O $444,000. O $462,000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit AnswerAndrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for P148,800. During the year, Valley Industries paid a cash dividend of P32 per share. At year-end, Valley’s shares were selling for P174 per share. In the income statement for the current year-end, what net amount of unrealized gain/loss and dividend revenue should be reported by Andrew Company?Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.65 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Ayayai sold the Sigma shares for $34.60 per share. Prepare Ayayai Corporation’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit September 8 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare Ayayai Corporation’s journal entry to record the dividends received. (Credit…
- Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradinginvestment for £13,200. During the year, Sherman paid a cash dividend of £3.25 per share. Atyear-end, Sherman shares were selling for £34.50 per share.Prepare Fairbanks' journal entries to record:(a) the purchase of the investment,(b) the dividends received, and(c) the fair value adjustment.Aylmer Corp has the following transactions relating to investments. Aylmer Corp has a December 31 year end. 01-Sep-19 Aylmer Corp purchased 3,100 shares of Belmont Inc at $13.00 per share. 31-Oct-19 Belmont Inc paid dividends of $5.00 per share. 31-Dec-19 Belmont Inc shares had a fair value of $12.00 per share. 31-Dec-19 Belmont Inc reported net income of $63,000 for the year. 01-Mar-20 Aylmer Corp sold all of Belmont Inc shares for $17.00 per share. Additional Information: Assume Aylmer Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments. Dividend income is required to be recorded in a separate account. REQUIRED: Prepare the appropriate entries for the above transactions.
- Chowking Company engaged in the following investment transactions during the current year: February 1 Purchased 5,000 ordinary shares of ZZZ Company for P200 per share plus a brokerage commission of P50,000. These shares are classified as trading securities. June 25 Received P120 per share dividend on ZZZ Company shares. October 1 Purchased 20,000 shares of XXX Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. December 31 Received P50 per share dividend on XXX Company shares. 31 ZZZ Company shares are selling for P250 and XXX shares are selling for P180. What net amount of income should be reported for the current year?January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Peter paid the broker's fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Peter and Ella are P15,200,000 and P2,500,000, respectively, and the book values of liability of Peter and Ella are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Peter is overvalued by P200,000 and non-current asset of Ella Corp is undervalued by P500,000. Peter Corp. has estimated P400,000 representing cost of exiting the activity of Ella Corp such as: cost of terminating employees and the cost of relocating terminated employees of Ella. The agreement also provides that Peter Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which December 31, 20x1, earnings of…JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year: Total consideration from share issuances amounted to P2,000,000. · A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80,000 were made during the year on the %. mortgage assumed on the land and building, The payments are inclusive of interest amounting to P10,000. · Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 20x1 is P120,000. How much is the profit for the year?
- Melville Inc. purchased 2,000 common shares (20%) of Raymore Ltd. on January 1, Year 5 for $42,000. Additional information on Raymore for the two years ending December 31, Year 6, is as follows: Year Net Income Dividends Paid Market Value per Share atend of period Year 5 $ 25,000 $ 13,000 $22.00 Year 6 28,000 14,000 22.60 At December 31, Year 6, Raymore had some inventory that was purchased from Melville. Melville had recorded a gross profit of $1,300 on the sale of this inventory. This gross profit should be deducted from Melville's Year 6 profit and investment account under the equity method. On January 1, Year 7, Melville sold its investment in Raymore for $47,000. Required: (a) Calculate the balance in the investment account at December 31, Year 6 under each of the cost and equity methods. (Omit $ sign in your response.) Investment account at end of Year 6 under cost method $ Investment account at end of Year 6 under equity method $…On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…Maganda Company had the following transactions for 20x5: a. On January 1, 20x5 Maganda Company purchased 1,500 shares (10% interest in voting shares) of Beautiful Company at P 100 per share plus transaction cost of P 5,000. b. At year end, the Beautiful Company’s ordinary shares had a fair value of P 125 per share. c. In March 20x6, Beautiful Company distributed a 20% stock dividends and subsequently gave P 1.00 dividend per share. d. In November 20x6, the investee corporation declared a 2 for 1 split . e. In December 20x6 Maganda Company sold 500 shares at P65 per share f. At year end of December 20x6, the Beautiful Company’s ordinary shares had a fair value of P 75 per share. Required: Prepare Journal Entries for each of the transactions above and compute for the balance of the Equity Investment that shall be reported in the Statement of Financial Position? How much shall be reported to the Profit and Loss Statement as a result of the transactions above.
