(worth $35,000), inventory (worth $83,750), and copyrights $12,250). Instructions: 1. Prepare the July 1 entry for Aeroplus Corporation to record the purchase. 2. Prepare the December 31 entry for Aeroplus Corporation to record amortization of intangibles. The copyrights have an estimated useful life of 5 years with a residual value of $2,250.
Q: Prepare the entry to record the disposal of the machine on January 1 in each separate situation.
A: Record of asset disposal is elimination of assets from company’s accounting records. The main…
Q: global accounting standards are compelling. High quality standards by companies throughout the world…
A: 1. Different Types of Accounting Standards There are different standards that are applicable in…
Q: Machinery was purchased on January 1 for $52,000. The machinery has an estimated life of 7 years and…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: Games Co. has eight employees, each of whom earns $3,500 per month. Income taxes are 20% of gross…
A: Gross Pay: Gross pay is the amount an employee receives for their work that has not had any…
Q: Alma Corp. issues 2,150 shares of $9 par common stock at $15 per share. When the transaction is…
A: When the share is issued at an excess price than a par value of a share, it is recorded to the…
Q: Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They…
A: The bonus that is granted to Finch and Gerhardt equals:- P 3,750 each is the correct answer.…
Q: Ruby company produces a chair that requires 6 yds. of material per unit. The standard price of one…
A: Variance is an important concept in accounting. It refers to the difference between a budgeted or a…
Q: Ross Corporation makes all sales on account. The June 30th balance sheet balance in its accounts…
A: The account receivables is the amount to be received from the customers during the period. The…
Q: Martinez Co. borrowed $69,569 on March 1 of the current year by signing a 60-day, 7%,…
A: From March 1 to April 30 = 60 days Interest is paid on the funds used by the business to generate…
Q: Bandar Industries manufactures sporting equipment. One of the company's products is a football…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Variance…
Q: At December 31, Hawke Company reports the following results for its calendar year. Cash sales $…
A: Introduction: Adjusting entries are made at the books of accounts to more accurately reflect your…
Q: The basic concept of “substance over form” influence lease accounting. Explain in detail how it does…
A: Substance over form is an accounting concept that business transactions should be accounted in…
Q: Required information [The following information applies to the questions displayed below.] Manuel…
A: Standard overhead rate is = Budgeted overhead at expected level of capacity/ hours at budgeted level…
Q: Additional information: 1. 2. 3. 4. 5. 6. 7. The following are comparative balance sheets for Vaughn…
A: Introduction: The cash flow statement is one of a company's financial statements that shows how much…
Q: Create a spreadsheet with an output section that: (i) determines the six overhead application rates…
A: ABC costing stand for Activity Based Costing which is used to allocate overhead cost on the basis of…
Q: Major medical complexes and their service providers continue to move toward advanced health…
A: Depreciation- Depreciation is the term used in accounting to describe how an asset's value…
Q: ted data for the fourth quarter of 2021. Sales are forecasted to be 60,000 cans at a price of $40…
A: Direct material purchase budget and Direct labour budget calculates the cost of material and…
Q: 7. Champion Contractors completed the following transactions involving equipment. Year 1…
A: The assets may be depreciated using the straight-line method of depreciation in which the…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Variable costs :- are costs that change with each level of output while fixed costs do not change…
Q: Burn Incorporated purchased a $510,000 machine to manufacture a specialty tap for electrical…
A: Solution: Net present value of the proposed investment is computed using formula = PV of cash…
Q: Use the following information for the Quick Study below. (Algo) (11-14) Skip to question [The…
A: Lets understand the basics. In FIFO basis company assumes that, goods come first in the inventory…
Q: If Kevin works off the clock, then he will sacrifice family time and responsibilities. This is an…
A: Answer:- Ethical reasoning meaning:- Ethical reasoning is a sort of critical thinking that involves…
Q: Use the following information for the Exercises 12-13 below. (Algo) Skip to question [The…
A: Introduction: A journal entry is used to document a commercial transaction in the accounting records…
Q: Make accounting entries for following perpetual inventory transaction Nov1,2019 business owner Sam…
A: The journal is the first step of recording the business transactions. The transactions are recorded…
Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…
A: A bond is a borrowing security issued by a company to raise funds from the market by making an…
Q: Make accounting entries for following perpetual inventory transaction Jan12,2018 business found…
A: Definition of Perpetual Inventory System: A Perpetual Inventory System is a method of continuously…
Q: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company…
A: Under process costing manufacturing of products done through various process during different…
Q: . Calculate the depreciation deduction and the unrecovered investment during each year of the
A: Depreciation is the expenses charged to profit and loss statement over the life of asset. it…
Q: Electric Car Company listed the following data for the current year: Budgeted factory overhead…
A: Overhead is applied on predetermined overhead rate here based on direct labor hours. Then apply…
Q: Bulls Corporation was incorporated on January 2, 2018. The following information pertains to Bulls’…
A: No of Outstanding shares of Bull's Corporation on December 31, 2018 is 120,000 Explanation :…
Q: Mark the correct statements [ ]Lead time is the interval between when an order is placed and when…
A: Inventory Management: Businesses may decide which goods to order when and in what amounts by using…
Q: Calculate the rental income for 2020. Also, determine the UCC balances on January 1, 2022. Include…
A: The rental income is the rental revenue less the expenses incurred. The UCC balance is the…
Q: st Company uses a normal, process costing system to determine product cost. The company es the…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Required: 1. Compute the operating income for the first year under full costing. 2. Compute the…
A: Full Costings :— it is also known as Absorption Costing. It is Costing system which treats all…
Q: Lighter Incorporated planned and manufactured 410,000 units of its single product in 2022, its first…
A: Introduction: Sales are the number of goods and services sold by a company within a given reporting…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: Under the units-of-production method or activity method the yearly depreciation is calculated based…
Q: 1. Extracted from the Pre-Adjustment Trial Balance at 30 June 2021: R 160 000 219 800 Fixed deposit…
A:
Q: Oriole Company has five employees participating in its defined benefit pension plan. Expected years…
A: Lets understand the basics. In years of service method, amortization is made on the basis of total…
Q: [The following information applies to the questions displayed below.] Victory Company uses weighted…
A: Equivalent Units of Production :— It is the number of completed units of product that are equivalent…
Q: Sharp Company manufactures a product for which the following standards have been set: Standard…
A: Variance refers to the difference between the actual and the standard performance of the company.…
Q: Assuming the Workmans file a joint tax return, determine their gross income minus expenses on the…
A: 1. Determination of Gross Income when Ryan's files joint return. S.NO PARTICULARS AMOUNT ($)…
Q: 1. T.J. Chan, an engineering consultant, decided to begin a business of his own. Chan has set up the…
A: Company at the end of any period or monthly wants to measure the performance and position and the…
Q: Lohan company uses plant wise predetermined overhead rate of $23.40 per direct labour hour. This…
A: Manufacturing overheads means the overheads incurred on the manufacture or production of the goods.…
Q: At December 31, Hawke Company reports the following results for its calendar year. Cash sales $…
A: Introduction: An unadjusted trial balance lists the accounts of a general ledger. It's prepared at…
Q: Required information [The following information applies to the questions displayed below.] National…
A: Allocation of cost :— It means distribution of cost to their cost object on the basis of allocation…
Q: OT Company y D decides to factor $60 its accounts receivables with recourse. The factoring company…
A: The accounts receivables means the amount that received in future. The accounts receivables arises…
Q: Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. If the…
A: Introduction: Bonds payable are recorded when a company issues bonds to make income. Because it is a…
Q: Assume a company with two divisions (A and B) prepared the following segmented income statement:…
A: Break even is the point at which an entity is just recovering its costs from the revenues but not…
Q: The Harris Company is the lessee on a four-year lease with the following payments at the end of each…
A: Leasing is an agreement which is usually written between the lessor and the lessee which allows for…
Q: What are the factors that determine whether the company should use cash acquisition or stock…
A: Cash Acquisition refers to the acquisition or proposal by one company to another company to buy…
Step by step
Solved in 2 steps
- On July 1, 2020, Hedwig Emporiums purchased Nargle Enterprises by paying $300,000 cash and issuing $200,000 note payable to Luna Lovely. At July 1, 2020, the balance sheet of Nargle Enterprises was as follows: A/R $50,000 Inventory $110,000 Land $45,000 Buildings (net) $80,000 Equipment (net) $65,000 Trademarks $5,000 Accounts Payable $200,000 Equity $155,000 The recorded amounts all approximate current values except for land (undervalued $10,000), inventory (overvalued $10,000) and trademarks (fair value $30,000). Assume the note was issued at par value. Prepare the July 1 entry to record purchase of Nargle Enterprises Prepare the December 31 entry to record amortization of Trademarks assuming a 5 year usual lifeShow the solution in good accounting form Orange Company’s ledger revealed the following account balances as of December 31, 2020: Unamortized discount on bonds payable P120,000; Organization costs P100,000; Losses in early years of company P450,000; Trademarks P750,000 Patents P150,000; Amount set up by BOD as goodwill P300,000. How much should be presented as intangible assets shown In the statement of financial position?The general ledger of Sunland Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 56000 Deposits with advertising agency (will be used to promote goodwill) 33000 Discount on bonds payable 76000 Excess of cost over fair value of identifiable net assets of Acquired subsidiary 540000 Trademarks 71000 In the preparation of Sunland's balance sheet as of December 31, 2021, what should be reported as total intangible assets? $644000. $611000. $667000. $700000.
- (b) Prepare the December 31 entry for Pronghorn Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,920. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entr before credit entry.) Account Titles and Explanation eTextbook and Media Debit Attempts: 1 of 3 use CreditGrand Champion Inc. purchased America’s Sweethearts Corporation on January 1, 2019. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value): Cash $62,000 Accounts receivable 138,000 Inventory 185,000 Property, plant, and equipment 300,000 Patent 65,000 Accounts payable 200,000 Notes payable 325,000 Grand Champion paid $900,000 for America’s Sweethearts. Assume that America’s Sweethearts is a reporting unit of Grand Champion. At the end of 2020, America’s Sweethearts has a fair value of $720,000 and a book value of $850,000, which includes any goodwill recorded. Of this fair value, $350,000 is attributable to identifiable assets net of (or identifiable net assets) liabilities. Required: Calculate the impairment loss of goodwill (if any) and record the appropriate journal entry.On January 1, 2021, ABC acquired all the assets and assumed all the liabilities of DEF Co. for P4,500,000. Relevant information follows: ASSETS Fair Values 55,000 800,000 180,000 750,000 4,000,000 200,000 1,555,0000 Carrying Value 55,000 800,000 Cash Receivable Allowance for Doubtful Accounts Inventory Land Goodwill Liabilities 150,000 700,000 3,500,000 150,000 1,555,000 DEC Co. has research and development projects with fair value of P100,000. ABC does not intend to use those R&Ds. However, there have been exchange transactions involving the information generated from DEF, but those transactions are infrequent. > All fair value adjustments result to temporary differences but do not affect the tax bases of the assets and liabilities. The tax rate is 30%. > ABC incurred P200,000 on general administrative costs of maintaining an internal acquisition department. Compute the goodwill (gain on bargain purchase)?
- At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000On June 1, 2021, Cline Company paid P800,000 cash for the assets and liabilities of Renn Corp. The carrying values for Renn's assets and liabilities on June 1, 2021 follow: Cash - P150,000; Accounts receivable - P180,000; Capitalized software costs - P320,000; Goodwill - P100,000; and Liabilities - P130,000. On June 1, 2021, Renn's accounts receivable had a fair value of P140,000. Additionally, Renn's in-process and development costs was estimated to have a fair value of P200,000. Renn Corp. had a contingent liability of P20,000, the fair value of which was P15,000. Renn agreed to indemnify Cline for P10,000 for the contingent liability. All other items were stated at their fair values. On Cline's June 1 balance sheet. How much is reported for goodwill? A. P90,000 B. P85,000 C. P130,000 D. P125,000. The following information pertains to Best Food (BF) Company’s intangible assets: a. On January 1, 2020, BF signed an agreement to operate as a franchisee of Macky’s Food Chain for an initial franchise fee of P1,500,000. Of this amount, P300,000 was paid when the agreement was signed and the balance is payable in 4 annual payments of P300,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020 of the 4 annual payments discounted at 14% (the implicit rate for a loan of this type) is P874,000. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. BF’s revenue from the franchise for 2020was P19 million. BF estimates the useful life of the franchise to be 10 years. b. BF incurred P1,300,000 of experimental and developmental costs in its laboratory to develop a patent which was granted on January 2,…
- The fair value of the net identifiable assets of Pax Limited are determined as follows:($000)Patent rights 200Machinery 1,000Buildings 1,500Land 2,3005,000Less: Bank loan 600Net assets 4,400At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines thatthe recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, isunchanged and remains at $4,400,000.Required:a) Prepare the journal entry to account for any impairment of goodwill. (6 marks)b) Assume instead that at the end of the reporting period the management of Snowy Ltd determinesthat the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,200,000. Determine the impairment of goodwill amount.You noted the following items relative to the company's intangibles assets of Pete Corporation at December 31, 2020.• On January, 2019 Pete signed an agreement to operate as franchisee of Clear Copy Service, Inc., for an initial franchise of P680,000. Of this amount, P200,000 was paid when the agreement was signed and the balance was payable in four annual payment of P120,000 each beginning on January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required in the franchisor. The implicit rate for loan of this type is 14%. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Pete's revenue from the franchise for 2020 was P8,000,000. Pete estimates the useful life of the franchise to be ten years.• Pete incurred P624,000 of experimental development costs in its laboratory to develop a patent which was granted on January 2, 2019, Legal fees and other costs associated with the…The general ledger of Megan Corporation as of December 31, 2018, includes the following accounts: Copyrights $ 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Bond sinking fund 70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 390,000 Trademarks 120,000 In the preparation of Megan's statement of financial position as of December 31, 2018, what should be reported as total intangible assets?