Required: Select the correct answer for each of the following questions.
Q: The following information is departmental cost allocation with two service departments and two…
A: Cost allocation refers to the process of distributing or assigning costs to various activities,…
Q: Sindhill Ca Ltd publishes a monthly sports mugazine, Fishing Preview, Subseriptions to the magazine…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: On January 1 of this year, Kaizen Corporation issued a $500 million note that matures in 10 years.…
A: A promissory note is a legal document used by the borrower to borrow funds. The borrower makes a…
Q: Current Attempt in Progress Cullumber Look produces and sells high-end golf equipment. The company…
A: TARGET COSTTarget cost of a product is the maximum cost that can be incurred for the product in…
Q: Q. 12. The markup percent is based on cost. Compute the missing terms. 100% + Cost Markup % Markup…
A: Markup on cost is the percentage added to the production cost to determine the selling price,…
Q: ayments made to a partner are repor
A: Guaranteed payments represent compensation to a partner for services rendered to the partnership and…
Q: Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse…
A: This question is related to accounting, which involves the recording, summarizing, and reporting of…
Q: You are a research analyst for Bedrock Capital Management and are considering investing in Evergreen…
A: Free cash flow is the net earnings plus the depreciation as cashflow considers only cash dealt items…
Q: Assume that Bisque Co. sold 12,000 units of Product A and 18,000 units of Product B in the last…
A: Lets understand the basics.Break even point is a point at which no profit no loss condition arise.…
Q: In 1998, Novak Company completed the construction of a building at a cost of $2,500,000 and first…
A: Depreciation is the method of reducing the hysterical cost of the fixed asset with respect to the…
Q: Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its…
A: Direct Materials Price Variance = (AP - SP) * AQDirect Materials quantity Variance = (AQ - SQ) * SP
Q: January 31, 2009 - Company A decides to purchase a new delivery vehicle. The cost, in dollars, is…
A: Lets understand the basics.Adjusting journal entries are passed in order to record correct amount of…
Q: duced and sold to achieve a
A: To calculate the number of units to be produced and sold to achieve a profit of P6 600 for the…
Q: The management of International Cookwares believes that delivery performance measures must be…
A: Manufacturing cycle efficiency is the measure of processing time to the whole of manufacturing cycle…
Q: Crane Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic…
A: The overhead cost is a cost that is allocated to the product or service at the time of production.…
Q: 1 On 31st March, 2016 the pass book of Mr.Menon's Current Account showed a credit balance of 20000.…
A: Bank Reconciliation Statement is a statement that contains the summary of comparison of the…
Q: Bramble Company expects to produce 1008,000 units of Product XX in 2022. Monthly production is…
A: Lets understand the basics Flexible budget shows costs are various level of activities. For…
Q: When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset…
A: Common stock, also known as common shares or equity, represents power in a pot. When an individual…
Q: The following figures have been extracted from the Profit & Loss statement of TVS Motors Ltd…
A: The objective of the question is to calculate the net profit of TVS Motors Ltd. using the given…
Q: The Richard’s Red Company maintains a checking account at the Bank of the North. The bank statement…
A: Current Assets is a balance sheet account that represents the worth of a company's assets that can…
Q: Exercise 12-8 (Algo) Cost of Quality [LO12-2] Walton Company measured its quality costs for the past…
A: Last YearThis YearPrevention costs$378,400$591,500Appraisal costs$440,600$550,500Internal failure…
Q: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be…
A: PRODUCTION BUDGETProduction Budget is a Forecast of the Production for the Budgeted Period of an…
Q: Sandhill Limited provides a defined contribution pension plan for its employees. The plan requires…
A: You can save funds in a defined contribution pension that you can use to generate income in…
Q: Analyzing and Interpreting Pension Disclosures DowDuPoint's 10-K report has the following…
A: A pension plan is a category of investment plan designed to assist people in saving for their…
Q: Here is selected data for Lori Corporation Cost of raw material purchased Cost of requisitioned…
A: The journal entries are prepared to record the transactions on regular basis. The direct costs are…
Q: Delta Company produces a single product. The cost of producing and selling a single unit of this…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: What is the taxable income on their 2013 joint return?
A: Taxable income on a joint return combines the incomes of both spouses, accounting for salary,…
Q: Adieu Company reported the following current assets and current liabilities for two recent years:…
A: The objective of the question is to calculate the quick ratio for Adieu Company for the years 20Y4…
Q: Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company…
A: Flexible Budget means : The flexible budget is an financial instrument that allows businesses and…
Q: Imported Autoparts Inc. issued $170,000 of 3%, five-year bonds at a price of 85 on January 31, 20x1…
A: Bond valuation refers to the process of determining the fair value of a bond. Bonds are debt…
Q: MANUFACTURING OVERHEAD BUDGET Production in Units Variable OH Rate/Unit Anticipated VOH Costs Fixed…
A: In accounting, budgeting refers to the process of creating a financial plan for a specific period,…
Q: Corporal Liana Jackson is domiciled in Virginia. In 2022, she was stationed in California all year…
A: In the United States, each state has its own tax laws, and individuals may be required to file a…
Q: Problem 3-11 Travel Expenses, Meals And Entertainment, Educational Expenses (LO 3.4, 3.5, 3.6) Bob…
A: Answer:- The IRS provides a tax form called Schedule C that is used to report income and expenses…
Q: Compute the company's current or deferred income tax expense or benefit.
A: A deferred income tax benefit is the benefit which is available to company due to reason of having…
Q: How much manufacturing overhead was allocated to Job #222?
A: Lets understand the basics.Predetermine overhead rate gets calculated using estimated overhead…
Q: Sunland University recently signed a contract with the bargaining unit that represents full-time…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Lifestyle Roofing uses job order costing and applies manufacturing overhead too individual projects…
A: The overhead cost is a cost that is allocated to the product or service at the time of production.…
Q: Ownership of Inventory Explain the implications relating to ownership when goods are: In transit…
A: Ownership of inventory can have significant implications for financial and logistical purposes. The…
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment One of the company's products,…
A: The variance is the difference between the standard and actual cost production data. The variance…
Q: Could someone explain how to get the Lease Liability of $100,000?
A: The objective of the question is to understand how to calculate the lease liability of $100,000.…
Q: 1) Alberto Co. issued 8%, 10-year bonds with a PAR value of $350,000 received in cash and…
A: Lets understand the basics.Journal entry is required to make to record event and transaction occur…
Q: In 1998, Novak Company completed the construction of a building at a cost of $2,500,000 and first…
A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…
Q: Q. 6. Compute the complement rate and the net price using the complement method. List Trade…
A: The complement rate is the value that remains after deducting the trade discount. Other than this…
Q: Bovine Company, a wholesale distributor of umbrellas, has been experiencing losses for some time, as…
A: Income statement is a financial statement that shows profitability, total revenue and total expenses…
Q: Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixtures.…
A: The T-account in the ledger represents the debit and credit entries for different types of…
Q: e the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percenta…
A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…
Q: Q. 14 A check register shows a balance of $391.63 before adding a deposit of $12.33 and writing…
A: The amount of money that a business has on hand or in its bank account at any given time is referred…
Q: Calculate break-even sales (in units) when fixed cost is $216,000, unit selling price is $120, and…
A: The objective of this question is to calculate the break-even point in units. The break-even point…
Q: On Jan. 2, 2014, Sirap Co. bought a mounding machine for $400,000. The machine has an 8-year useful…
A: Depreciation refers to the annual depletion of assets due to usage or wear and tear, which is a…
Q: P7-6 (Algo) Analyzing and Interpreting the Effects of Inventory Errors LO7-5 [The following…
A: Lets understand the basics.Income statement is the part of financial statements which are prepared…
Ram.5
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Paulos Company purchases a controlling interest in Sanjoy Company. Sanjoy had identifiable net assets with a book value of $500,000 and a fair value of $800,000. It was agreed that the total fair value of Sanjoy’s common stock was $1,200,000. Use value analysis schedules to determine what adjustments will be made to Sanjoy’s accounts andwhat new accounts and amounts will be recorded if: a. Paulos purchases 100% of Sanjoy’s common stock for $1,200,000. b. Paulos purchases 80% of Sanjoy’s common stock for $960,000.2. Banana Company purchases 80 percent of Mango. At the date of acquisition, Mango has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition earnings will be created on the consolidated income statement at the acquisition date? 3. Delta Corporation acquires 70 percent of Bravo Company’s stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances? Book Value Market Value Cash P10,000 P10,000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,000 Cost of Goods Sold 130,000 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained…Required Information [The following information applies to the questions displayed below.] Apple Corporation acquires 80 percent of Berry Corporation's common shares on January 1, 20X2. On January 2, 20X2, Berry acquires 60 percent of Coco Corporation's common stock. Information on company book values on the date of purchase and operating results for 20X2 is as follows: Company Apple Corporation Berry Corporation Coco Corporation Required: Select the correct answer for each of the following questions. Multiple Choice The fair values of the noncontrolling interests of Berry and Coco at the dates of acquisition were $60,000 and $80,000, respectively. O $22,000. Book Value $ 800,000 300,000 200,000 O $46,000. Purchase Price $ 240,000 120,000 4. The amount of income assigned to the noncontrolling interest in the 20X2 consolidated income statement is: O $42.000. $20,000. 28X2 Operating Income $ 100,000 80,000 50,000
- Panther Company is about to acquire a 100% interest in Snake Company. Snake has identifiable net assets with book and fair values of $300,000 and $500,000, respectively. As payment, Panther will issue common stock with a fair value of $750,000. How would the transaction be recorded if the acquisition is: a. An acquisition of net assets? b. An acquisition of Snake’s common stock and Snake remains a separate legal entity?Company Aero is about to acquire 100% of company Berry. Company Berry has identifiable net assets with book value of $300,000 and $500,000 respectively. As payment Company Aero will issue common stock with a fair value of $75,000. How should the transaction be recorded if the acquisition is:a) An acquisition of net assets?b) An acquisition of Company B’s common stock and Company B remains a separate legal entity?ABC Company acquired XYZ Company in an acquisition. What date should be used as the acquisition date for the transaction? * The date ABC signs the contract to purchase the business. The date ABC obtains control of XYZ. The date that all contingencies related to the transaction are resolved. The date ABC purchased more than 20% of the stock of XYZ.
- ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non-controlling interest on the acquisition date consolidated balance sheet? In good accounting form, please. Thank you! <33On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. In good accounting form, please. Thank you! <33Illustration 2. Non-Controlling InterestOn January 1, 2021, Inahan Co. acquired 75% of the voting shares of Bunso, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Bunso acquired by Inahan are shown below: On the negotiation for the business combination, Inahan Co. incurred the following transaction costs: P65,000.00 for legal fees; P 125,000.00 for due diligence costs and P 60,000.00 for the general administrative costs of maintaining an internal acquisitions department. 1.How much is the previously held equity interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33 2.How much is the fair value of the net identifiable assets acquired?a. 4,560,000.00b. 2,610,000.00c. 3,110,000.00d. 2,810,000.00 3.How much is the goodwill (gain on bargain purchase) on the business combination?a. 490,000.00b. 542,500.00c. 723,333.33d. 750,000.00
- Illustration 2. Non-Controlling InterestOn January 1, 2021, Inahan Co. acquired 75% of the voting shares of Bunso, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Bunso acquired by Inahan are shown below: On the negotiation for the business combination, Inahan Co. incurred the following transaction costs: P65,000.00 for legal fees; P 125,000.00 for due diligence costs and P 60,000.00 for the general administrative costs of maintaining an internal acquisitions department. Case 1: Non-Controlling Interest measured at fair valueInahan Co. elects the option to measure the non-controlling interest at fair value. The independent consultant engaged by Inahan Co. determined that the fair value of the 25% non-controlling interest in Bunso, Inc. is P600,000.00. Inahan paid P 1,500,000.00 cash and P750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc. 1.How much is the transaction costs incurred during…X Company purchased a (100%) controlling interest in Y Company by issuing $2,000,000 worth of common shares. The business combination agreement has an earnout clause that states the following: X Company would pay 10% of any earnings in excess of $750,000 to Y's shareholders in the first year following the acquisition. On acquisition date, X's shares had a market value of $80 per share.Required:a) Assuming that Y's net income in the first year following the acquisition was $950,000, prepare any journal entries (for X Company) that are necessary to reflect Y's results under IFRS 3 Business Combinations.b) Assuming that the agreement called for Y's shareholders to be compensated with 1,250 shares for any decline in X's share price, what journal entries would be required under IFRS 3, if the market value of X's shares dropped to $64 within the year?PROTEIN Ent, purchases 90% of the outstanding voting shares of FIBER Corp on January 1, 2021. On that date, A. PROTEIN’s Non-controlling interest account will include 10% of the book value of FIBER’s net assets B. PROTEIN’s Non-controlling interest account will include 10% of the acquisition differential on the Date of Acquisition. C. PROTEIN’s Non-controlling interest account will include 10% of any unallocated portion of the acquisition differential on the Date of Acquisition. D. PROTEIN’s Non-controlling interest account will include 10% of the fair value of FIBER’s net asset.