Company A acquires Company B on May 1, 2016. Please prepare the journal entry to record Consideration Transferred. Total assets acquired 28,783 Total liabilities assumed 9,978 Net assets acquired 18,805 Non-controlling interest (155) Total net consideration transferred 18,650 Common Stock Other capital Shares issued for merger 104 19,696
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- Assume an investor company purchases all of the stock of the investee company in a stock purchase for $900 on 1/1/2022. The investee’s balance sheet on the date of purchase is as follows: Accounts receivable $75 Mortgage payable $75 Inventories $150 Building $600 Stockholders’ equity $750 Total assets $825 Total liabilities and equity $825 Assume the additional purchase price relates to the b uilding value not reported on investee company’s balance sheet. The building held by the investee has a remaining useful life of 10 years on the acquisition date and depreciated based on the straight-line method. Also assume, subsequent to the purchase, the investee reports net income of $150 and pays $45 in dividends to the investor during 2022. Required: Provide all necessary journal entries related to this investment for the investor company using the equity method during 2022The balance sheet of the proprietorship of Jacob as of June 30, 2018 showed the following assets andliabilities:Cash P 40,000Accounts Receivable 53,600Inventory 88,000Equipment 65,600Accounts Payable 63,520The cash balance included a 200- share certificate of BW Resources common at acquisition cost of P 1,600; the current market quotation is 70 per share. Of the accounts receivable, an estimated 5% is considered to be doubtful of collection. Certain inventory items, booked at a cost of P22,960, are currently worth P16,000. Depreciation has not been recorded; the equipment, acquired two years ago, has a remaining useful life of about eight more years. Prepaid expense of P 12,800 and accrued expense of P 6,120 have not been properly recognized. Emily and Bert will join Jacob in a partnership. Jacob will invest the net assets of his business, after effecting the appropriate adjustments, and he will be allowed credit for goodwill equal to 10% of his initial capital credit. Emily and Bert…Prepare journal entries on December 31, 2020 and December Problem 15-4 (IAA) Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,000 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: 31, 2021. 426
- INVESTMENT IN ASSOCIATE 1. On January 1, 2021 Dona Company purchased 10% of another entity’s outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee’s operations for 2021 and 2022:2021 2022Net income 3,000,000 4,000,000Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…
- The Wondai Ltd Croup reports the following balances in its consolidated financial statements for the year ending 30 June Financial year 2018 $ 2017 $ Buildings 524,000 268,000 ACC Depr. - Buildings 190,000 143,000 Depr Expense - Buildings 50,000 23,000 On1 July 2017. the Wondai Ltd Group acquired 80%. the shares in Yallingup Ltd. which recorded the following account balances at that date: 1 July 2017 $ Buildings 80,000 Acc Depr.- Buildings 32,000 During the year ended 30 June 2018, the Wondai Ltd Group disposed of buildings with a carrying. amount of $63,000 Required: Calculate the amount of consolidated cash flows from investing activities in relation to the purchase of buildings for the year ending 30 June 2018On January 1,2021 Hubalde Company purchased training equity investments which are irrevocably designated at FVPL: 1. Determine the unrealized gain/loss on december 31,2021? 2. Determine the net gain/loss reported on the income statement on december 31,2021? 3. What are the related journal entries? 4. Assuming, the entity irrevocably designated it ay FVOCI, How much is the unrealized gain/loss- FVOCI on December 31,2021? 5. Assuming, the entity irrevocably designated it ay FVOCI, How much is the unrealized gain/loss reported on the income statement on December 31,2021? 6. Assuming the entity irrevocably designated it at FVOCI, What are the related journal entries?Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $848,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $212,000 both before and after Miller's acquisition. On January 1, 2016, Taylor reported a book value of $492,000 (Common Stock $246,000; Additional Paid-In Capital = $73,800; Retained Earnings = $172,200). Several of Taylor's buildings that had a remaining life of 20 years were undervalued by a total of $65,600. During the next three years, Taylor reports income and declares dividends as follows: Year Net Income Dividends $ 57,700 $ 8,400 12,700 17,000 2016 2017 75,600 2018 84,600 Determine the appropriate answers for each of the following questions: a. What amount of excess depreciation expense should be recognized in the consolidated financial statements for the initial years following this acquisition? b. If a consolidated…
- REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022. INFORMATION Extract from the ledger of Sooraya Enterprises on 28 February 2022 R Capital: Soo 450 000 Capital: Raya 350 000 Current a/c: Soo (01 March 2021) Current a/c: Raya (01 March 2021) Drawings: Soo Drawings: Raya The following must be taken into account: 30 000 CR 25000 DR 220 000 260 000 1. On 28 February 2022 the Profit and Loss account reflected a net profit of R 880 000. 2. Partners are entitled to interest at 12% p.a. on their capital balances. Note: Soo increased her capital contribution by R180 000 on 01 September 2021. The capital increase has been recorded. 3. The partners are entitled to the following monthly salaries for the first 6 months of the financial year: Soo R15 000 Raya R11 000 From 01 September 2021, the partners will be entitled to annual salaries of R144 000 each. 4. Raya is entitled to a bonus…The following information relates to Crane Company for 2022: Realized gain on sale of available-for-sale securities Unrealized holding gains arising during the period on available-for-sale securities 109500 Reclassification adjustment for gains included in net income 30200 $46800 The amounts to add to or subtract from Crane's 2022 net income to determine comprehensive income are O $126100. O $156300. O $186500. O $79300.Sandhill Corporation has income from continuing operations of $268,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. 2. An unrealized loss of $85,000 on available-for-sale securities. A gain of $33,000 on the discontinuance of a division (comprised of a $17,000 loss from operations and a $50,000 gain on disposal). Assume all items are subject to income taxes at a 22% tax rate. Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income for the year ended December 31, 2022. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Income from Continuing Operations Discontinued Operations Income from Continuing Operations Discontinued Operations Net Income /(Loss) SANDHILL CORPORATION Income Statement (Partial) For the Year Ended December 31, 2022 V 50000 -17000 $ 268000 25740 293740