Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 4, Problem 41P
a.
To determine
Prepare a consolidated income statement for the year ending December 31, 2018.
b.
To determine
Determine the consolidated balance for each of the following accounts as of December 31, 2018:
Goodwill - Equipment (net)
- Building (net)
- Dividends declared
- Common stock
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:
Gibson
Davis
Sales
$
(774,000
)
$
(359,000
)
Cost of goods sold
351,000
167,000
Operating expenses
197,000
80,000
Dividend income
(18,000
)
0
Net income
$
(244,000
)
$
(112,000
)
Retained earnings, 1/1/21
$
(746,000
)
$
(416,000
)
Net income
(244,000
)
(112,000
)
Dividends declared
60,000
30,000
Retained earnings, 12/31/21
$
(930,000
)
$
(498,000
)
Cash and receivables
$
314,400
$
80,000
Inventory
505,000
168,000
Investment in Davis
576,600
0
Buildings (net)
551,000
592,000
Equipment (net)
453,000
499,000
Total assets
$
2,400,000
$
1,339,000
Liabilities
$
(840,000
)
$
(501,000
)
Common stock
(630,000
)
(340,000
)
Retained earnings, 12/31/21
(930,000
)
(498,000
)
Total liabilities and stockholders' equity
$…
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:
Davis
(381,000)
204,000
69,000
0
Sales
Cost of goods sold
Operating expenses
Dividend income
Net income
Retained earnings, 1/1/21
Net income
Dividends declared
Retained earnings, 12/31/21
Cash and receivables.
Inventory
Investment in Davis
Buildings (net)
Equipment (net)
Total assets.
Liabilities
Common stock
Retained earnings, 12/31/21
Total liabilities and
stockholders' equity
Gibson
$ (768,000) $
380,000
182,000
(24,000)
$ (230,000) $ (108,000)
(451,000)
(108,000)
40,000
(519,000)
72,000
220,000
$ (761,000) $
(230,000)
50,000
$
$
(941,000) $
$
245,400
582,000
552,600
598,000
443,000
0
640,000
495,000
$1,427,000
(568,000)
(340,000)
(519,000)
$(1,427,000)
$ 2,421,000
$ (850,000) $
(630,000)
(941,000)
$(2,421,000)
Gibson acquired 60 percent of Davis on April 1, 2021, for $552,600. On that date, equipment owned by Davis (with a five-year
remaining life) was overvalued by…
ollowing are financial statements for Moore Company and Kirby Company for 2021:
Moore
Kirby
Sales
$ (800,000)
$ (600,000)
Cost of goods sold
500,000
400,000
Operating and interest expenses
100,000
160,000
Net income
$ (200,000)
$ (40,000)
Retained earnings, 1/1/21
$ (990,000)
$ (550,000)
Net income
(200,000)
(40,000)
Dividends declared
130,000
–0–
Retained earnings, 12/31/21
$(1,060,000)
$ (590,000)
Cash and receivables
$ 217,000
$ 180,000
Inventory
224,000
160,000
Investment in Kirby
657,000
–0–
Equipment (net)
600,000
420,000
Buildings
1,000,000
650,000
Accumulated depreciation—buildings
(100,000)
(200,000)
Other assets
200,000
100,000
Total assets
$ 2,798,000
$ 1,310,000
Liabilities
$(1,138,000)
$ (570,000)
Common stock
(600,000)
(150,000)
Retained earnings, 12/31/21
(1,060,000)
(590,000)
Total…
Chapter 4 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Assuming that Pride, in its internal records,...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 1DYSCh. 4 - Prob. 2DYSCh. 4 - Costco Wholesale Corporation owns and operates...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.arrow_forwardComprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)arrow_forwardComprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.arrow_forward
- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.arrow_forwardIncome Statement Ratio The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $580, and income tax expense of $13,920. Hollys stockholders equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at the end of the year. Required Compute Hollys profit margin. What other information would you need in order to comment on whether this ratio is favorable?arrow_forwardfinancial statement below represents the performance of Yovela & Co in 2023. Yovela and Co Income statement for the year ended 31 December 2023 $ Sales revenue 187,000 Cost of goods sold (105,000) Gross profit 82,000 Interest income 1, 050 Selling, General & Administrative Exp. (49,300) Interest Expense (1,950) Profit before tax 31,800 Tax Exp. (8,427) Profit after tax 23, 373 Statement of financial position as at 31 December 2023 ASSETS $ $ Non- Current Assets Delivery van 44, 500 Current Assets Inventories 26,000 Trade receivables 21, 600 Cash at bank 20,855 Prepaid expenses (325) 68,455 Total Assets 112,955 EQUITY AND LIABILITIES Current Liabilities Trade payables 18,000 Tax payable 2,350 20, 350 Non- Current Liabilities Non- current debt 35, 650 Total Liabilities 56, 000 Equity 56, 955 Total equity and liabilities 112, 955 Required: As an analyst, you are required to prepare a condensed financial statement as part of your process of evaluating the business of Yovela $ Co. Useful…arrow_forward
- The following are financial statements of Carla Vista Co.. Carla Vista Co.Income StatementFor the Year Ended December 31, 2022 Net sales $2,247,500 Cost of goods sold 1,018,500 Selling and administrative expenses 901,000 Interest expense 82,000 Income tax expense 75,000 Net income $ 171,000 Carla Vista Co.Balance SheetDecember 31, 2022 Assets Current assets Cash $ 56,300 Debt investments 81,000 Accounts receivable (net) 169,500 Inventory 118,900 Total current assets 425,700 Plant assets (net) 574,000 Total assets $ 999,700 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 161,000 Income taxes payable 37,000 Total current liabilities 198,000 Bonds payable 201,880 Total liabilities 399,880 Stockholders’ equity Common stock 355,000 Retained earnings 244,820…arrow_forwardFollowing are financial statements for Moore Company and Kirby Company for 2021: Kirby (600,000) 400,000 Moore ( 800,000) 500,000 100,000 ( 200,000) Sales $ Cost of goods sold Operating and interest expenses 160,000 ( 40,000) Net income 2$ $ (990,000) (200,000) 130,000 Retained earnings, 1/1/21 $ (550,000) ( 40,000) Net income Dividends declared Retained earnings, 12/31/21 $(1,060,000) (590,000) Cash and receivables $ 217,000 224,000 657,000 180,000 160,000 Inventory Investment in Kirby Equipment (net) Buildings Accumulated depreciation-buildings 600,000 1,000,000 (100,000) 200,000 $ 2,798,000 420,000 650,000 (200,000) 100,000 $ 1,310,000 Other assets Total assets $(1,138,000) (600,000) (1,060,000) $(570,000) (150,000) (590,000) Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equity $(2,798,000) $(1,310,000) (Note: Parentheses indicate a credit balance.) • Moore purchased 90 percent of Kirby on January 1, 2020, for $657,000 in cash. On that date, the 10…arrow_forwardAdditional information: Common stock outstanding January 1, 2022, was 34,250 shares, and 38,250 shares were outstanding at December 31, 2022. (Use a simple average for weighted-average.) The market price of Bonita stock was $30 on December 31, 2022 Cash dividends of $21,840 were declared and paid. 1. 2 3. Compute the following measures for 2022. (Round Earnings per share to 2 decimal places, eg. 1.65, and all other answers to 1 decimal place, eg. 6.8 or 6.8%) (a) (b) (c) (d) Earnings per share $ Price-earnings ratio Payout ratio Times interest earned times. % timesarrow_forward
- Financial Information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2020 $2,500.0 2,125.0 $375.0 75.0 $300.0 55.0 $ 245.0 98.0 $147.0 $152.1 $117.6 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net Income Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2021: $ b. What was the 2021 free cash flow? 2021 $2,875.0 2,444.0 $ 431.0 86.0 $345.0 63.3 $281.7 112.7 $ 169.0 $ -Select- 2021 46.0 450.0 540.0 $1,036.0 863.0 $1,899.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $601.5 Long-term bonds 575.0 Total liabilities $1,176.5 661.5 Common…arrow_forwardThe income statement of Tavis Corporation and selected additional data are presented below: Tavis Corporation Income Statement for the Year Ended December 31, 2020 Net sales $220,000 Cost of goods sold __109,000 Gross profit 111,000 Selling and general expenses _98,000 Income from operations 13,000 Interest expense __2,500 Income before income tax 10,500 Income tax expense __3,000 Net income $ 7,500 Additional data: Total assets $214,000 Common stockholders’ equity $116,000 Preferred dividends…arrow_forwardHere are the comparative condensed income statements of Cheyenne Corporation. CHEYENNE CORPORATIONCondensed Income StatementsFor the Years Ended December 31 2022 2021 Net sales $588,000 $490,000 Cost of goods sold 474,516 416,010 Gross profit 113,484 73,990 Operating expenses 80,556 44,100 Net income $ 32,928 $ 29,890 (a)Prepare a horizontal analysis of the income statement data for Cheyenne Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CHEYENNE CORPORATIONCondensed Income Statementschoose the accounting period Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $588,000 $490,000 $enter a dollar amount enter…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Fundamentals Of Financial Management, Concise Edi...FinanceISBN:9781337902571Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Fundamentals Of Financial Management, Concise Edi...
Finance
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Earnings per share (EPS), basic and diluted; Author: Bionic Turtle;https://www.youtube.com/watch?v=i2IJTpvZmH4;License: Standard Youtube License