Required Prepare the [E] and [A] consolidation entries on the date of the acquisition:
Q: Alice Brooks, a professional appraiser, based the value of a subject site on similarities and…
A: Land valuation is the process of estimating the monetary worth of a specific piece of land. It…
Q: 1. For computing the OASDI taxes, the maximum self-employment earnings of any individual is…
A: For computing the OASDI taxes the maximum self employment earning is $ 200,000False Reason : Maximum…
Q: [The following information applies to the questions displayed below.] Information for Pueblo Company…
A: Contribution margin ratio is the one which is determined by the entity for the purpose of knowing…
Q: Adams, Incorporated, acquires Clay Corporation on January 1, 2023, in exchange for $579,900 cash.…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: At the end of February, after the second month of operations of Able Baker Charlie Company, Charles…
A: The inventory accounts include raw materials, work in process, and finished goods. The total…
Q: [The following information applies to the questions displayed below.] Selected comparative financial…
A: Trend analysis:Trend analysis refers to the financial statement analysis technique Using this…
Q: The following accounts are taken from Equilibrium Riding, Incorporated, a company that specializes…
A: Financial statement means statement which shows the financial position as on date and financial…
Q: ) FOUR characteristics of an effective internal control system b) THREE different types of internal…
A: Internal control is:The process designed, implemented and maintained by those charged with…
Q: Brooks Corp. has the following information: Beginning Inventory (1/1) $20,000 $15,000 $30,000 Direct…
A: Cost of goods manufactured:— It is the total cost of completed finished goods transferred from work…
Q: Mountain Country Inc. sells an Xpert skateboard that is popular with skateboard enthusiasts. The…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO, the…
Q: Watko Entertainment Systems (WES) buys audio and video components for assembling home entertainment…
A: The field of accounting known as cost accounting is utilized by manufacturing organizations to…
Q: Auditors are required to assess any ethical threats before accepting clients and must either reject…
A: Ethical dangers to auditors are circumstances or scenarios that may jeopardize their capacity to…
Q: ANSWER QUICK!! JUST THE ANSWER PLEASE NO EXPLANATION 7.8.9 For the following operation,…
A: Hi studentSince there are multiple questions asked, we will answer only first question.Journal…
Q: The January 28 (fiscal year-end) financial statements of Collette, Inc. reported the following…
A: FIFO method of inventory costing: An inventory system known as FIFO or first in first out makes the…
Q: On July 1, 2025, Novak Co. pays $10,200 to Splish Insurance Co. for a 2-year insurance policy. Both…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of…
A: The term "Bad debt expense" refers to the projected share of accounts receivable that a company…
Q: Dividing partnership net loss Morgan Graff and Serigo Vargas formed a partnership in which the…
A: A partnership firm is a type of business where two or more partners come together to do business to…
Q: Drake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In…
A: A defined benefit plan is a type of employer-sponsored retirement plan that promises employees a…
Q: value-driven car manufacturer, Crane, started its business more than 50 years ago, making and…
A: In considering whether to continue or drop a product line, the relevant costs of the product should…
Q: your business just signed a 4 year contract with a cybersecurity services consultant; the contract…
A: Equivalent Annual Cost -The yearly expense of possessing, managing, and preserving an asset for its…
Q: Belltone Company made the following expenditures related to its 10-year-old manufacturing building:…
A: Revenue expenditure are those expenditure the benefit of which is received in the same period in…
Q: Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a…
A: As per Federal Tax Laws, an individual's inquiry expenses can be deducted over a period of 180…
Q: The following information is available for Beach Company for 2025 who uses a periodic inventory…
A: Cost of goods sold budget shows the expenses incurred for producing a product. Cost of goods sold is…
Q: Exercise 4-2 (Algo) Equivalent Units of Production-Weighted-Average Method [LO 4-2] Clonex Labs,…
A: Equivalent cost is evaluated based on the percentage of the work that is completed during the…
Q: 40 000146 Heathcote Corporation is a manufacturer that uses job-order costing. The company closes…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the…
A: Interest expense refers to the cost of borrowing money which is incurred by a company or individual.…
Q: For each of the following, compute the future value: Note: Do not round intermediate calculations…
A: Future value is the value of an investment or asset at a specified future date, calculated based on…
Q: Below are the transactions for Oliver Printing, Incorporated for June, the first month of…
A: Accounting cycle is one of important concept of accounting. It starts with recording of business…
Q: Shah Entertainment Center borrowed money by issuing $6,000,000 of 4% bonds payable at 97.5. Interest…
A: Introduction:Bonds payable are a type of long-term debt instrument that a company issues to raise…
Q: Equivalent Units and Related Costs; Cost of Production Report: Weighted Average Cost Method Joshua…
A: Equivalent Units of Production -It is usually necessary to express a department's output in terms…
Q: -- On April 1, year 1, McKenzie Corporation issues $60 million of 12 %, 10-year bonds payable at…
A: The bonds are the long-term liabilities of the business. The bonds are issued to raise the money…
Q: Ivanhoe Corporation's adjusted trial balance contained the following asset accounts at December 31,…
A: The objective of the question is to prepare the current assets section of the balance sheet for…
Q: Materials Labor and Overhead
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Woolard Supplies (a sole proprietorship) has taxable income in 2023 of $240,000 before any…
A: Depreciation -The word "depreciation" is defined as an accounting method wherein the cost of…
Q: Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions…
A: Social Security tax is the tax levied on employers and employees to fund the Social Security program…
Q: 5. ABC Corporation uses the weighted-average method in its process costing. The following data…
A: An equivalent unit is used to indicate the number of units completed in reference to a particular…
Q: On January 1, 2025, Blossom, Inc. signs a 10-year noncancelable lease agreement to lease a storage…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: Builder Products, Incorporated, uses the weighted-average method in its process costing system. It…
A: Equivalent unit means where some goods remain incomplete at the end of process and we need to…
Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On October 31, the end of…
A: Using variable costing, the variable manufacturing costs are included in the product cost.Using…
Q: Preparing closing entries for a merchandiser P3 The following listing of temporary accounts is from…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000,…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4] Espresso Express operates a number of…
A: Lets understand the basics.Costs are mainly divided into two types which are,(1) Variable costs(2)…
Q: The manager at the Yarn Shoppe needs to determine the price she could sell 50 units of wool yarn and…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Required information [The following information applies to the questions displayed below.] Trey has…
A: A taxpayer is eligible to claim child and dependent care credit if he/she paid expenses for the care…
Q: Leach Finishing makes various metal fittings for the construction Industry. Three of the fittings,…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: (a) An International Code of Ethics for professional Accountant was developed by International…
A: The International Federation of Accountants (IFAC) is the global organization for the accountancy…
Q: After the amount due on a sale of $24,300, terms n/eom, is received from a customer, the seller…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces…
A: Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…
Q: Required: 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its…
A: Predetermined overhead rate: This rate is used by the business entities to allocate the…
![On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $9,750,000 cash. On that date,
Willey's total stockholders' equity was $7,250,000. The following assets had fair values different from
book values.
Book Value Fair Value
Buildings and Land $13,500,000 $14,500,000
Other Assets
Bonds Payable
625,000
250,000
7,500,000 6,250,000
Required
Prepare the [E] and [A] consolidation entries on the date of the acquisition:
[E]
Debit
Credit
[A]
V
(to record the [E] consolidation entry)
(to record the [A] consolidation entry)
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4525f76-6a1e-4266-8d4a-e2805147da74%2F03744775-8175-43d8-adbb-5e13b960ed76%2Fz1866r3_processed.jpeg&w=3840&q=75)
Step by step
Solved in 3 steps
- The equity accounts of Jordan Company total $2,000,000. On 1/1/X1, Davidson Company purchased 60% of Jordan for $1,985,000. The fair values of net assets are equal to book values. What are goodwill and noncontrolling interests amounts?On January 1, 2XX1, Bargain Inc. acquired 100% of Wind Corporation for $9,750,000 cash. On that date, Willey's total stockholders' equity was $7,250,000. The following assets had fair values different from book values. Book Value Fair Value Buildings and Land $13,500,000 $14,500,000 Other Assets 625,000 Bonds Payable 7,500,000 Required Prepare the [E] and [A] consolidation entries on the date of the acquisition: [E] Debit Credit 9,750,000 [A] Cash 250,000 6,250,000 Equity investment (to record the [E] consolidation entry) Buildings and land Other assets Goodwill Bonds payable Cash (to record the [A] consolidation entry). 0 Debit 14,500,000 250,000 4,000,000 0 0 0x 9,750,000 x Credit 0x 0x 0x 6,250,000 * 9,750,000 *Planter Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sorden Company's net assets on January 1, 20X2. On that date, the fair value of the bonds issued by Planter was $627,000. The following balance sheet data were reported by Sorden: Balance Sheet Item Assets Cash and Receivables Inventory Land Plant and Equipment Less: Accumulated Depreciation Goodwill Total Assets Liabilities and Equities Accounts Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities and Equities Historical Cost $ 56,000 114,000 64,000 414,000 (154,000) 12,000 $ 506,000 $ 49,000 84,000 57,000 316,000 $ 506,000 Fair Value $ 48,000 182,000 92,000 290,000 $ 612,000 $ 49,000 Required: Prepare the journal entry that Planter recorded at the time of exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
- On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book value of the net assets of Set totaled $500,000. Based on the appraisal done at the time of the purchase, all assets and liabilities had book values equal to their fair values except as follows: Book Value Fair Value Inventory $100,000 $120,000 Land 75,000 85,000 Equipment (useful life 4 years) 125,000 165,000 The remaining excess of cost over book value was allocated to a patent with a 10-year useful life. During 20X1 XYZ reported net income of $200,000 and Set had net income of $100,000. What income from subsidiary did Promo include in its net income if Promo uses the simple equity method? a. $70,000 b. $42,000 c. $38,000 d. $110,000HELP MENorthern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,600,000 in cash. The book values and fair values of Pioneer’s assets and liabilities were Book Value Fair ValueAccounts Receivable $ 750,000 $ 650,000Buildings 4,100,000 4,800,000Equipment 110,000 200,000Accounts Payable (750,000) (750,000)Net assets $ 4,210,000 $ 4,900,000Required:1. Calculate the amount Northern Equipment should report for goodwill.2. Record Northern Equipment’s acquisition of Pioneer Equipment Rental.
- On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value FairValueCurrent assets $ 6,000,000 $7,500,000Property, plant, and equipment 11,000,000 14,000,000Other assets 1,000,000 1,500,000Current liabilities 4,000,000 4,000,000Long-term liabilities 6,000,000 5,500,000 Required:Calculate the amount paid for goodwill.On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing’s balance sheet immediately before the acquisition contained the following items: SALT MANUFACTURING Balance Sheet January 1, 20X0 Book Value Fair Value Assets Cash and Receivables $ 48,000 $ 48,000 Land 77,000 87,000 Buildings and Equipment (net) 137,000 167,000 Patent 87,000 87,000 Total Assets 349,000 Liabilities & Equities Accounts Payable $ 153,000 153,000 Common Stock 143,000 Retained Earnings 53,000 Total Liabilities & Equities $ 349,000 On the date of the stock acquisition, Pepper's shares were selling at $40, and Salt Manufacturing’s buildings and equipment had a remaining economic life of 10 years. The amount of the differential assigned to goodwill is not impaired. In the two years following the stock acquisition, Salt Manufacturing reported net income of…On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing’s balance sheet immediately before the acquisition contained the following items: SALT MANUFACTURING Balance Sheet January 1, 20X0 Book Value Fair Value Assets Cash and Receivables $ 48,000 $ 48,000 Land 77,000 87,000 Buildings and Equipment (net) 137,000 167,000 Patent 87,000 87,000 Total Assets 349,000 Liabilities & Equities Accounts Payable $ 153,000 153,000 Common Stock 143,000 Retained Earnings 53,000 Total Liabilities & Equities $ 349,000 On the date of the stock acquisition, Pepper's shares were selling at $40, and Salt Manufacturing’s buildings and equipment had a remaining economic life of 10 years. The amount of the differential assigned to goodwill is not impaired. In the two years following the stock acquisition, Salt Manufacturing reported net income of…
- On January 1, 20x1, Magnum Corp. acquired all the identifiable assets and assumed the liabilities of Colt Corp. The book values and fair values of Magnum and Colt Corp. prior to business combination are as follows: Magnum Colt Book value Fair Value Book Value Fair Value Cash 6,000,000 6,000,000 1,000,000 1,000,000 Accounts Receivable 500,000 470,000 120,000 105,000 Allowance for doubtful account (40,000) (20,000) Inventories 1,000,000 950,000 500,000 510,000 Land 3,000,000 3,200,000 1,200,000 1,300,000 Building 2,000,000 1,600,000 1,000,000 850,000 Accumulated Depreciation (500,000) (200,000) Total 11,960,000 12,220,000 3,600,000 Accounts Payable 3,000,000 2,500,000 1,000,000 1,000,000 Notes Payable 500,000 480,000 600,000 550,000 Ordinary share - P100 par 4,000,000 1,000,000 Share premium 1,200,000 200,000…During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying $11,600,000 cash. The book values and fair values of Miller's assets and liabilities acquired are listed below: 1,425,000Inventories2,300,0003,600,000 Property, plant, and Book ValueFair ValueAccounts receivable$ 1,600,000$ equipment8,600,00011,225,000Accounts payable 2,600,0002,600,000Bonds payable4,100,0003,725,000 Required: Prepare the journal entry to record the acquisition by Brewer Company. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.On December 31, 20X8, Parkway Corporation acquired 80 percent of Street Company's common stock for $104,000 cash. The fair value of the noncontrolling interest at that date was determined to be $26,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Parkway Corporation Street Company Cash $ 90,000 $ 20,000 Accounts Receivable 80,000 35,000 Inventory 100,000 40,000 Land 40,000 60,000 Buildings and Equipment 300,000 100,000 Less: Accumulated Depreciation (100,000) (40,000) Investment in Street Company 104,000 Total Assets $ 614,000 $ 215,000 Accounts Payable 120,000 30,000 Mortgage Payable 200,000 100,000 Common Stock 50,000 25,000 Retained Earnings 244,000 60,000 Total Liabilities and Equity $ 614,000 $ 215,000 On that date, the book values of Street's assets and liabilities approximated fair value except for inventory, which had a fair value of $45,000, and buildings and equipment,…