On January 3, 2018,A Corp. purchased 25% of the voting common stock or C0.paying S2,500,000. A Cop. decided to use the equity method to account for this investment. Atthe ime of the investment, G Co, total stockholders' equity was S8,000,000. ACOIp. gathered the following intormation about G Co. assets and liabiiines Fair Value $500,000 1.300,0 00 0,000 Book Value S400,000 1.000,000 Buildings (10-year life) Equipment (5-year lite) Franchises (8-year life) For all other assets and liabilities, book value and fair vaue were equal. Any excess of cost over tair value was attributed to goodwill, which has not been impaired

On January 3, 2018,A Corp. purchased 25% of the voting common stock or C0.paying S2,500,000. A Cop. decided to use the equity method to account for this investment. Atthe ime of the investment, G Co, total stockholders' equity was S8,000,000. ACOIp. gathered the following intormation about G Co. assets and liabiiines Fair Value $500,000 1.300,0 00 0,000 Book Value S400,000 1.000,000 Buildings (10-year life) Equipment (5-year lite) Franchises (8-year life) For all other assets and liabilities, book value and fair vaue were equal. Any excess of cost over tair value was attributed to goodwill, which has not been impaired

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

See similar textbooks

Similar questions

As of December 31, 2018, Sadaf Oman Company reported assets of RO 3,700,000, share capital of RO 990,000 and retained earnings of RO 1,600,000. Total liabilities reported on the statement of financial position as of December 31, 2018 is Select one O a RO 1,100,000. Ob RO 1350,00. OC RO 1,110000. O d. RO 1,240,000.
On January 1, 2017, an entity showed the following shareholders' equity: Share capital, 300,000 shares outstanding, P5 par 1,500,000 Share premium 3,000,000 Retained earnings 5,000,000 On July 1,2017, the entity declared a property dividend of inventory payable on March 1, 2018. The inventoy had P1,200,000 carrying amount and a fair value less cost to distribute of P1,500,000 on July 1, 2017, P1,800,000 on December 31, 2017 and P2,000,000 on March 1, 2018. The net income for 2017 was P3,000,000. What mount should be reported as retained earnings on December 31, 2017? On December 31, 2017, the inventory should be reported at what amount? What amount should be recognized as gain on distribution of property dividend in 2018?
Investments in Stocks--Equity Method or FVTOCI Financial Assets--Equity According to the statements, prepare the appropriate journał entries, and calculate the differences.. Tony Ltd. acquired 30% of the outstanding ordinary shares of Chang Company on January 1, 2018, by paying $900,000 for the 90,000 shares. Chang declared and paid $0.15 per share cash dividends on March 15, June 15, September 15, and December 15, 2018. Chang reported net income of $160,000 for the year. At December 31, 2018, the market price of Chang ordinary shares was $12 per share. Required: 1. Prepare the journal entries for Tony Ltd. for 2018, assuming Tony Ltd. cannot exercise significant influence over Chang, and Tony Ltd. made an irrevocable election to treat the equity investment as fair value through other comprehensive income. 2.: Prepare the journal entries for Tony Ltd. for 2018, assuming Tony Ltd. can exercise significant influence over Chang. Tadicate the statement of financial position and income…
The equity section of Whispering Inc. at January 1, 2022, was as follows. Share capital-ordinary $390,000 Accumulated other comprehensive income Unrealized holding gain on equity securities designated at fair value through other comprehensive income 65,000 Retained earnings 26,000 During the year, the company had the following transactions. 1. Issued 13,000 shares at $3 per share. 2. Dividends of $12.200 were declared and paid. 3. Net income for the year was $130,000. Unrealized holding loss of $6,500 occurred on its equity securities designated at fair value through other comprehensive 4. income. Prepare a statement of changes in equity for Whispering Inc. WHISPERING INC.
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
Blossom SA reported the following balances at December 31, 2019: share capital-ordinary €530,000, share premium-ordinary €115,000, and retained earnings €310,000. During 2020, the following transactions affected equity. 1. Issued preference shares with a par value of €140,000 for €247,000. 2. Purchased treasury shares (ordinary) for €45,000. Earned net income of €174,000. Declared and paid cash dividends of €52,000 3. 4. Prepare the equity section of Blossom SA's December 31, 2020, statement of financial position.
Following are the Balance Sheets of A Ltd. and its subsidiaries B Ltd. and C Ltd. as on 31st March, 2016: C Ltd. A Ltd. $ B Lta. $ $ I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital Shares of 100 each 12,50,000 | 10,00,000 6,00,000 (b) Reserves and Surplus : 1,80,000 1,60,000 1,00,000 20,000 72,000 51,000 Reserves Surplus Account (2) Current Liabilities Sundry Creditors 1,03,000 1,20,000 Total Equity and Liabilities 16,93,000 | 12,40,000 7,23,000 II. Assets (1) Non-current Assets Fixed Assets 2,80,000 5,50,000 3,75,000 (2) Current Assets 5,30,000 Investments at Cost Stock in Trade 10,30,000 1,20,000 2,63,000 Sundry Debtors 1,60,000 3,48,000 Total Assets 16,93,000| 12,40,000 7,23,000 (a) The break-up of investments, which were all made on 30th September, 2015, is as under: (i) A Ltd. held- 7,500 shares in B Ltd. at a cost of 8,50,000 and 1,500 shares in C Ltd. at a cost of 1,80,000. (ii) B Ltd. held- 4,000 shares in C Ltd. at a cost of 5,30,000. (b) (i) Sundry…
Manson Incorporated reported investments in equity securities of $60,495 as a current asset on its December 31, 2018, balance sheet. An analysis of Manson’s investments on December 31, 2018, reveals the following: Equity Security Cost Fair Value 400 shares of Turben Company, common $14,275 $13,590 500 shares of Cook Corp. common stock 12,650 13,175 700 shares of Hill Corp. common stock 17,450 18,180 200 shares of Web Engines, preferred stock 19,100 15,550 Totals $63,475 $60,495 During 2019, the following transactions related to Manson’s investments occurred: Transactions: Jan. 6 Received a $265 dividend on the Turben Company common stock. Mar. 31 Received the semiannual dividend of $500 on the Web Engines preferred stock. The following information is available concerning Manson’s investments: Equity Security Fair Value Turben Company $13,470 Cook Corp. 13,765 Hill Corp. 18,940 Web Engines 15,500 June 30 Received a…
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss?Using the data, how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. Using the data, how much will be credited to Cash? Using the data, how much will be debited to Ordinary Share Premium??
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]
The Shareholders’ Equity of Purple Corporation showed the following: Ordinary Share capital, P 10 par, 900,000 shares issued P9,000,000; Ordinary Share Premium P2,700,000; Retained Earnings P1,300,000. On January 2, 2019, the corporation purchased and retired 100,000 shares of its share capital for P 1,800,000. a. In preparing the journal entry for this transaction, is there an indicated gain or indicated loss? b. how much is the indicated gain (loss)? If your answer is an indicated loss, put a parenthesis. c. how much will be credited to Cash? d. how much will be debited to Ordinary Share Premium??
At December 31, 2010, Weston Manufacturing Co. owned the following investments in capital stock of publicly traded companies (classified as available-for-sale securities): Cost Current Market Value Footlocker, Inc. (5,000 shares: cost, $17 per share; market value, $20). . . . . . . . . . . . . . . . $ 85,000 $100,000 The Gap, Inc. (4,000 shares: cost, $17 per share; market value, $15) . . . . . . . . . . . . . . . . . . . 68,000 60,000 $153,000 $160,000 In 2011, Weston engaged in the following two transactions: Apr. 10 Sold 1,000 shares of its investment in Footlocker, Inc., at a price of $21 per share, less a brokerage commission of $50. Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $14 per share, less a brokerage commission of $60. At December 31, 2011, the market values of these stocks were: Footlocker, Inc., $18 per share; and The Gap, Inc., $16 per share. Prepare journal entries to record the transactions on April 10 and August 7.