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On July 1, 2021, Clearwater Inc. purchased 7,200 shares of the outstanding common stock of Mountain...
On July 1, 2021, Clearwater Inc. purchased 8,000 shares of the outstanding common stock of Mountain...
On July 1, 2021, Clearwater Inc. purchased 8,000 shares of the outstanding common stock of Mountain Corporation at a cost of $160,000. Mountain had 40,000 shares of outstanding common stock. The total book value and total fair value of Mountain’s individual net assets on July 1, 2021, are both $800,000. The total fair value of the 40,000 shares of Mountain’s common stock on December 31, 2021, is $860,000. Both companies have a January through December fiscal year. The following data...
Turner Company purchased 25% of the outstanding stock of ICA Company for $10,900,000 on January 2,...
Turner Company purchased 25% of the outstanding stock of ICA Company for $10,900,000 on January 2, 2021. Turner elects the fair value option to account for the investment. During 2021, ICA reports $840,000 of net income and on December 30 pays a dividend of $580,000. On December 31, 2021, the fair value of Turner's investment has increased to $13,300,000. Prepare the journal entries in the books of Turner to account for this investment during 2021. Assume that Turner will account...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a face amount of $230,000. The bonds sold for $275,524 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2021. 2. Prepare the entry to record interest...
I will give thumbs up for correct answers! On July 1, 2016, Farm Fresh Industries purchased...
I will give thumbs up for correct answers!
On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $328,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $40,000. On March 1, 2021, the truck was sold for $156,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset...
On January 1, 2018, Cameron inc bought 10% of the outstanding common stock of Lake Construction...
On January 1, 2018, Cameron inc bought 10% of the outstanding common stock of Lake Construction Company for $170 million cash At the date of acquisition of the stock, Lake's net assets nad ฮ fair value of S700 milion. Their book value was S600 million The difference was attributable to the fair value of Lake's buildings and its land exceeding book value. each accounting for one-haif of the difference. Lake's net income for the year ended December 31, 2018, was...
Check my work At the beginning of 2021, VHF Industries acquired a machine with a fair...
Check my work At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,760,200 by Issuing a two-year, noninterest-bearing note in the face amount of $8 million. The note is payable in two annual installments of $4 million at the end of each year. (FV of $1. PV of $1. EVA of $1. PVA of $1, FVAD of $1 and PVAD of $9 (Use appropriate factor(s) from the tables provided.) 2.24 points Skipped Required: 1....
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 420,000 shares for...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 420,000 shares for $500,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $270,000 and distributed
cash dividends of 25 cents per share. At year-end, the fair value
of the shares is $527,000.
Required information Exercise 12-19 (Algo) Investment securities and equity...
National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 9 million shares at $1 par Paid-in capital-excess of par Retained earnings $ 9,000,000 63,000,000 92,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February...
Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,500 tires to the...
Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,500 tires to the Nixon Car Company for $50 each. The terms of the sale were 3/10, n/30. Harwell uses the net method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and...
At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,127,520...
At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,127,520 by issuing a seven-year, noninterest bearing note in the face amount of $14 million. The note is payable in seven annual installments of $2 million at the end of each year. (FVOEŠI. PV 51. EVA of S1, PVA of S1,EVAD of $1 and PVA of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in...
Turner Company purchased 25% of the outstanding stock of ICA Company for $10,900,000 on January 2, 2021. Turner elects the fair value option to account for the investment. During 2021, ICA reports $840,000 of net income and on December 30 pays a dividend of $580,000. On December 31, 2021, the fair value of Turner's investment has increased to $13,300,000. Prepare the journal entries in the books of Turner to account for this investment during 2021. Assume that Turner will account...
On February 1, 2021. Sanford & Son issued 10% bonds dated February 1, 2021, with a face amount of $230,000. The bonds sold for $275,524 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2021. 2. Prepare the entry to record interest...
I will give thumbs up for correct answers!
On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $328,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $40,000. On March 1, 2021, the truck was sold for $156,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset...
On January 1, 2018, Cameron inc bought 10% of the outstanding common stock of Lake Construction Company for $170 million cash At the date of acquisition of the stock, Lake's net assets nad ฮ fair value of S700 milion. Their book value was S600 million The difference was attributable to the fair value of Lake's buildings and its land exceeding book value. each accounting for one-haif of the difference. Lake's net income for the year ended December 31, 2018, was...
Check my work At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,760,200 by Issuing a two-year, noninterest-bearing note in the face amount of $8 million. The note is payable in two annual installments of $4 million at the end of each year. (FV of $1. PV of $1. EVA of $1. PVA of $1, FVAD of $1 and PVAD of $9 (Use appropriate factor(s) from the tables provided.) 2.24 points Skipped Required: 1....
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 420,000 shares for $500,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $270,000 and distributed
cash dividends of 25 cents per share. At year-end, the fair value
of the shares is $527,000.
Required information Exercise 12-19 (Algo) Investment securities and equity...
National Supply's shareholders' equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 9 million shares at $1 par Paid-in capital-excess of par Retained earnings $ 9,000,000 63,000,000 92,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 February...
Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,500 tires to the Nixon Car Company for $50 each. The terms of the sale were 3/10, n/30. Harwell uses the net method of accounting for cash discounts. Required: 1. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and payment on July 23, 2021. 2. Prepare the journal entries to record the sale on July 15 (ignore cost of goods) and...
At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,127,520 by issuing a seven-year, noninterest bearing note in the face amount of $14 million. The note is payable in seven annual installments of $2 million at the end of each year. (FVOEŠI. PV 51. EVA of S1, PVA of S1,EVAD of $1 and PVA of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. What is the effective rate of interest implicit in...
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