3) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold...
3) Prince Company owns 104,000 of the 130,000 shares outstanding of Serf Corporation. Serf Corporation sold equipment to Prince Company on January 1, 2017 for $740,000. The equipment was originally purchased by Serf Corporation on January 1, 2013 for $1,280,000 and at that time its estimated depreciable life was 8 years. The equipment is estimated to have a remaining useful life of four years on January 1, 2017. Both companies use the straight-line method to depreciate equipment.
Required:
A. Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2018 consolidated financial statements workpapers.
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3) Prince Company owns 104,000 of the 130,000
shares outstanding of Serf Corporation. Serf Corporation sold...
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $723,600 for architectural services. The c...
During 2013, Pier One Company billed its 80% owned subsidiary,
Scale Company, $723,600 for architectural services. The cost to
Pier One Company of providing the services was $426,500 for
salaries and $147,100 for other operating expenses. Scale Company
charged the architecture fees to the cost of a building that it
opened on January 1, 2014. The building had an estimated useful
life of 30 years.
Prepare in general journal form the workpaper entries relating to
the intercompany fees that are...
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services....
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services. The cost to Pier One Company of providing the services was $392,900 for salaries and $153,900 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2014. The building had an estimated useful life of 30 years. Prepare in general journal form the workpaper entries relating to the intercompany fees that are...
Pinta Company, a forklift manufacturer, owns 80% of the voting stock of Standard Company. On Janu...
Pinta Company, a forklift manufacturer, owns 80% of the voting
stock of Standard Company. On January 1, 2014, Pinta Company sold
forklifts to Standard Company for $412,400. The forklifts, which
represented inventory to Pinta Company, had a cost to Pinta Company
of $322,400. The management of Standard Company estimated that the
forklifts had a useful life of nine years from the date of
purchase. Standard Company uses the straightline method to
depreciate its capital assets.
In 2014, Pinta Company reported...
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common...
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000. Required: A. Calculate the amount of gain on the sale of the land that is recognized on...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $187,000. The trial...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $187,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 83,000 $ 34,000 Accounts Receivable 53,000 58,000 Inventory 180,000 119,000 Land 81,000 29,000 Buildings and Equipment 496,000 155,000 Investment in Sword Company 240,000 Cost of Goods Sold 496,000 251,000 Depreciation Expense 23,000 13,000 Other Expenses 64,000 64,000 Dividends Declared 51,000...
NEED ANSWERS ASAP Pan Corporation owns 65 percent of Sauce Corporation's voting shares. On January 1, 20X3, Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interes...
NEED ANSWERS ASAP Pan Corporation owns 65 percent of Sauce Corporation's voting shares. On January 1, 20X3, Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interest rate was 4 percent. The bonds mature in 15 years and pay interest semiannually on June 30 and December 31. Based on the information given above, in the preparation of the 20X3 consolidated financial statements, interest income will be: credited for $21,000 in the consolidation entries. credited for...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $188,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Item Debit Credit Debit Credit Cash $ 94,000 $ 39,000 Accounts Receivable 53,000 58,000 Inventory 188,000 108,000 Land 92,000 34,000 Buildings and Equipment 494,000 161,000 Investment in Sword Company 217,000 Cost of Goods Sold 494,000 257,000 Depreciation Expense 24,000 14,000 Other Expenses 74,000 74,000 Dividends Declared 56,000...
On January 1, 2013, Price Company acquired an 80% interest in the common stock of Smith...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
How to computer the Accumulated depreciation? Prince Corporation acquired 100 percent of Sword Company on January...
How to computer the Accumulated
depreciation?
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 26,000 71,000 103,000 21,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales...
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $192,000. The trial...
Prince Corporation acquired 100 percent of Sword Company on
January 1, 20X7, for $192,000. The trial balances for the two
companies on December 31, 20X7, included the following amounts:
Additional Information
On January 1, 20X7, Sword reported net assets with a book value
of $129,000. A total of $30,000 of the acquisition price is applied
to goodwill, which was not impaired in 20X7.
Sword’s depreciable assets had an estimated economic life of 11
years on the date of combination. The...
During 2013, Pier One Company billed its 80% owned subsidiary,
Scale Company, $723,600 for architectural services. The cost to
Pier One Company of providing the services was $426,500 for
salaries and $147,100 for other operating expenses. Scale Company
charged the architecture fees to the cost of a building that it
opened on January 1, 2014. The building had an estimated useful
life of 30 years.
Prepare in general journal form the workpaper entries relating to
the intercompany fees that are...
During 2013, Pier One Company billed its 80% owned subsidiary, Scale Company, $706,100 for architectural services. The cost to Pier One Company of providing the services was $392,900 for salaries and $153,900 for other operating expenses. Scale Company charged the architecture fees to the cost of a building that it opened on January 1, 2014. The building had an estimated useful life of 30 years. Prepare in general journal form the workpaper entries relating to the intercompany fees that are...
Pinta Company, a forklift manufacturer, owns 80% of the voting
stock of Standard Company. On January 1, 2014, Pinta Company sold
forklifts to Standard Company for $412,400. The forklifts, which
represented inventory to Pinta Company, had a cost to Pinta Company
of $322,400. The management of Standard Company estimated that the
forklifts had a useful life of nine years from the date of
purchase. Standard Company uses the straightline method to
depreciate its capital assets.
In 2014, Pinta Company reported...
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000. Required: A. Calculate the amount of gain on the sale of the land that is recognized on...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
How to computer the Accumulated
depreciation?
Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Sword Company Debit Credit $ 26,000 71,000 103,000 21,000 152,000 Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales...
Prince Corporation acquired 100 percent of Sword Company on
January 1, 20X7, for $192,000. The trial balances for the two
companies on December 31, 20X7, included the following amounts:
Additional Information
On January 1, 20X7, Sword reported net assets with a book value
of $129,000. A total of $30,000 of the acquisition price is applied
to goodwill, which was not impaired in 20X7.
Sword’s depreciable assets had an estimated economic life of 11
years on the date of combination. The...
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