ZuoTi.Pro
Question

XYZ Company had the following transactions related to ABC company over a two-year period: Year 1...

XYZ Company had the following transactions related to ABC company over a two-year period:

Year 1

1. On January 1, XYZ purchased 35% ownership of ABC Company for $700,000 cash.

2. ABC Company had net income of $70,000 for the year.

3. At year-end, ABC Company paid its shareholders dividends of $60,000.

Year 2

1. XYZ Company purchased on January 1 an additional 5% of ABC Company’s stock for $75,000 cash

2. ABC Company had net income of $150,000 for the year.

3. At year-end, ABC company paid its shareholders dividends of $100,000

What amounts will appear on the financial statements? Year 1 Year 2

Balance Sheet

Income Statement

Statement of Cash Flows

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

page or Inswer What amounts will appeare un financial statemente Balance sheet year year 2 — 00000+ Investment (70000-60000)

0 0
Add a comment
Know the answer?
Add Answer to:
XYZ Company had the following transactions related to ABC company over a two-year period: Year 1...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Struggling hard with this one. Any help is appreciated greatly! P1. XYZ Company had the following...

    Struggling hard with this one. Any help is appreciated greatly! P1. XYZ Company had the following transactions related to ABC Company over a two-year period: Year 1 1. On January 1, XYZ purchased 35% ownership of ABC Company for $700.000 cash. 2. ABC Company had net income of $70,000 for the year. 3. At year-end. ABC Company paid its shareholders dividends of $60.000. Year 2 1. XYZ Company purchased on January 1 an additional 5% of ABC Company's stock for...

  • Question 23 4 pts On 03/01/2019 ABC Company purchased 30% of the stock of XYZ Corporation...

    Question 23 4 pts On 03/01/2019 ABC Company purchased 30% of the stock of XYZ Corporation for $6,000,000. How will ABC treat a 2019 cash dividend paid by XYZ to its shareholders? O ABC will record the dividend using the equity method. The dividend will therefore be reported as a reduction in the amount of the investment in XYZ. ABC will record the dividend using the equity method. The dividend will therefore be reported as an increase in the amount...

  • Question 1 Company XYZ had the following information during 2020: 1. Beginning inventory was $50,000. Purchases...

    Question 1 Company XYZ had the following information during 2020: 1. Beginning inventory was $50,000. Purchases of inventory was $120,000. Ending inventory was 35% of beginning inventory at the end of the year. 2. Cash on hand was $325,000. 3. Sales revenue was $225,000. 4. Operating expenses were half of cost of goods sold. 5. Income tax rate was 20%. Prepare an income statement for 2020 using the (1) single-step approach and (2) multiple-step approach. What are the advantages and...

  • ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the...

    ABC Corp had the following financial data related to the year-end 2018 and 2019. Prepare the Statement of Cash Flows, as of December 31, 2019, for ABC Corp.                                                Comparative Balance Sheet Data ABC Corp Balance Sheet December 31 2019 2018 Cash $ 142,740 $ 46,080 Accounts Receivable 126,360 58,800 Inventories 146,250 123,420 Long-term Investments 111,800 112,800 Equipment, net 286,000 228,600 $813,150 $ 569,700 Accounts Payable $ 130,000 $ 80,760 Income Tax Payable 21,450 20,400 Bonds Payable 97,500 132,000 Common...

  • 1) ABC Company started business on January 1, 2018 and had the following transactions in the...

    1) ABC Company started business on January 1, 2018 and had the following transactions in the month of January 2018: 1. On January 2, ABC sold shares of the company and received $800,000 in cash 2. On January 4, the company bought inventory for resale from RTY Co. and promised to pay cash at a later date. The cost of the inventory was $400,000. 3. On January 8, ABC sold inventory to YUT Co. at a sale price of $400,000....

  • PART 1 XYZ Company began operations in May, 2022 by selling common stock to owners in...

    PART 1 XYZ Company began operations in May, 2022 by selling common stock to owners in exchange for $90,000 cash. During 2022, ABC Company entered into the following transactions: 1. On May 23, ABC Company purchased inventory for $50,000 cash. 2. On June 1, ABC Company purchased a three-year insurance policy for $32,400 cash. 3. On July 1, ABC Company received $49,000 cash from a customer for services to be performed over the next 8 months. 4. On August 1,...

  • 1. During the year 2017, the ABC company had sales of $1,000, cost of goods sold...

    1. During the year 2017, the ABC company had sales of $1,000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. Using a 34% corporate tax rate, and assuming all taxes are paid the year they are due, construct BC’s income statement for 2017. 2. The ABC Company had 100 shares of outstanding common stock at the end of 2017. Total dividends paid for 2017 were $120. Compute earnings per share (EPS) and dividends per...

  • On January 1, 2021 ABC purchased 30% of the outstanding common stock of XYZ and subsequently...

    On January 1, 2021 ABC purchased 30% of the outstanding common stock of XYZ and subsequently used the equity method to account for the investment. During 2021, XYZ reported net income of $1,200,000 and distributed total dividends of $500,000. The ending balance of the investment in XYZ at December 31, 2021 was $1,000,000 after applying the equity method during 2021. What was the initial purchase price ABC paid for its investment in XYZ?

  • On January 1, 2020, Pharoah Company had cash and common shares of $80,000. At that date,...

    On January 1, 2020, Pharoah Company had cash and common shares of $80,000. At that date, the company had no other asset, liability, or shareholders’ equity balances. On January 2, 2020, Pharoah Company paid $60,000 cash for equity securities that it designated as fair value through other comprehensive income (FV-OCI) investments. During the year, Pharoah Company received non-taxable cash dividends of $26,000 and had an unrealized holding gain of $29,000 (net of tax) on these securities. Determine the following amounts...

  • please answer 5-9 1. During the year 2017, the ABC company had sales of $1,000, cost...

    please answer 5-9 1. During the year 2017, the ABC company had sales of $1,000, cost of goods sold of $400, depreciation of $100, and interest paid of $150. Using a 34% corporate tax rate, and assuming all taxes are paid the year they are due, construct BC’s income statement for 2017. 2. The ABC Company had 100 shares of outstanding common stock at the end of 2017. Total dividends paid for 2017 were $120. Compute earnings per share (EPS)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT