Homework Answers
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As per the HomeworkLib policy only first four questions should be answered. kindly take note of it.
1. answer is option C
For stock dividends, the proper journal entry is recorded in the general journal. For stock-split, memorandum entry is required. Journal entry for stock dividend is as follows:
Dr. Retained earnings
Cr. Common stock distributable
2. answer is option A
On the balance sheet, the short-term investments are reported at cost. The use of market value is done to recognize gain or loss on the sale. Therefore, short-term investments will be reported at $52000.
3. answer is option A
Total assets of a consolidated assets = parent company’s assets + subsidiary company’s assets.
4. answer is option A
The net income of subsidiary is considered as the investment of parent company. The proportion of investment will be equal to the proportion of parent company’s voting right in subsidiary i.e. 25%. And the amount of investment will be 25000 (100000*25%).
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Circle the letter of the best response 1. Which of the features does not describe short-term...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except for a building that it feels is...
tion Equity method ging 59.000 Shares of $30 per share, for e the consolidation LOZ luc...
tion Equity method ging 59.000 Shares of $30 per share, for e the consolidation LOZ luc Com shares of the first year. individual net values that equaled 00 (depreciation auisition date, allowing: PPE assets inte sot that has a fair value o 320,000 (amor c. Prepare the consolid d. Explain why the (ADJ) consolidating enllyn 48. Consolidation at the end of the first year subsequent to date of acquisition- Assume the parent company acquires its subsidiary on January 1, 2019....
template Herbert, Inc. acquired all of Rambis Company's outstanding stock on January 1, 2020 for $574,000...
template
Herbert, Inc. acquired all of Rambis Company's outstanding stock on January 1, 2020 for $574,000 in cash. Annual excess amortization of $ 12,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $ 400,000, and Rambis reported a $ 200,000 balance. Herbert reported internal income of $40,000 in 2020 and $ 50,000 in 2021 and paid $10,000 in dividends each year. Rambis reported net income of $ 20,000 in 2020 and $30,000 in...
can someone please assist with below questions thank you how did they get solution 3. Parent...
can someone please assist with below questions thank you how
did they get solution
3. Parent and Sub Inc, had the following balance sheets on December 31, 2012: Current Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Parent $ 60,000 $100,000 $160,000 $ 42,000 $ 20,000 $ 90,000 $ 8,000 $160,000 Sub $10,000 $60,000 $70,000 $35,000 $12,000 $12,000 $11,000 $70,000 On January 1, 2013 Parent purchased all of Sub Inc.'s...
Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at ...
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
man L03 43. Determining ending consolidated balances in the second year following the acquisition-Cost method Assume...
man L03 43. Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2018. for $1.200,000. The purchase price was $650,000 in excess of the subsidiary's $550,000 book value of Stockholders' Equity on the acquisi tion date. Of this excess purchase price, $250,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $400,000 was assigned to Goodwill. On the acquisition...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $574,000 in...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $574,000 in cash. Annual excess amortization of $12,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $400,000, and Rambis reported a $200,000 balance. Herbert reported internal net income of $40,000 in 2020 and $50,000 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $20,000 in 2020 and $30,000 in 2021 and declared $5,000 in...
Accountancy
Talbott Company purchased 80 percent of Short Company's stock on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Short's book value. On December 31, 20X9, Short purchased 10 percent of Talbott's stock. Balance sheets for the two companies on December 31, 20X9, are as follows: TALBOTT COMPANY Condensed Balance Sheet December 31, 20x9 $ 84,000 Accounts Payable 85,000 Accounts Receivable 147,000 Bonds Payable 395,000 Inventory...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is a. the cost method. b. the equity method. C. the preparation of consolidated financial statements. d. determined by agreement with whomever owns the remaining 90% of the stock. On January 1, 2020, Jamestina Corp. paid $1,800,000 for 100,000 shares of Belinda Company's common stock, which represents 25% of Belinda's outstanding common stock. Belinda reported net...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $642,000 in...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $642,000 in cash. Annual excess amortization of $11,200 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $497,000, and Rambis reported a $280,000 balance. Herbert reported internal net income of $54,750 in 2020 and $68,650 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $21,300 in 2020 and $35,200 in 2021 and declared $5,000 in...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except for a building that it feels is...
tion Equity method ging 59.000 Shares of $30 per share, for e the consolidation LOZ luc Com shares of the first year. individual net values that equaled 00 (depreciation auisition date, allowing: PPE assets inte sot that has a fair value o 320,000 (amor c. Prepare the consolid d. Explain why the (ADJ) consolidating enllyn 48. Consolidation at the end of the first year subsequent to date of acquisition- Assume the parent company acquires its subsidiary on January 1, 2019....
template
Herbert, Inc. acquired all of Rambis Company's outstanding stock on January 1, 2020 for $574,000 in cash. Annual excess amortization of $ 12,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $ 400,000, and Rambis reported a $ 200,000 balance. Herbert reported internal income of $40,000 in 2020 and $ 50,000 in 2021 and paid $10,000 in dividends each year. Rambis reported net income of $ 20,000 in 2020 and $30,000 in...
can someone please assist with below questions thank you how
did they get solution
3. Parent and Sub Inc, had the following balance sheets on December 31, 2012: Current Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Parent $ 60,000 $100,000 $160,000 $ 42,000 $ 20,000 $ 90,000 $ 8,000 $160,000 Sub $10,000 $60,000 $70,000 $35,000 $12,000 $12,000 $11,000 $70,000 On January 1, 2013 Parent purchased all of Sub Inc.'s...
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
man L03 43. Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1, 2018. for $1.200,000. The purchase price was $650,000 in excess of the subsidiary's $550,000 book value of Stockholders' Equity on the acquisi tion date. Of this excess purchase price, $250,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $400,000 was assigned to Goodwill. On the acquisition...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $574,000 in cash. Annual excess amortization of $12,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $400,000, and Rambis reported a $200,000 balance. Herbert reported internal net income of $40,000 in 2020 and $50,000 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $20,000 in 2020 and $30,000 in 2021 and declared $5,000 in...
if 25% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is a. the cost method. b. the equity method. C. the preparation of consolidated financial statements. d. determined by agreement with whomever owns the remaining 90% of the stock. On January 1, 2020, Jamestina Corp. paid $1,800,000 for 100,000 shares of Belinda Company's common stock, which represents 25% of Belinda's outstanding common stock. Belinda reported net...
Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $642,000 in cash. Annual excess amortization of $11,200 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $497,000, and Rambis reported a $280,000 balance. Herbert reported internal net income of $54,750 in 2020 and $68,650 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $21,300 in 2020 and $35,200 in 2021 and declared $5,000 in...
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