Rami Corporation established on January 1, 2016. Along with other assets, it immediately purchased land for...
Rami Corporation established on January 1, 2016. Along with other assets, it immediately purchased land for $160,000, a building for $480,000, and equipment for $180,000. On January 1, 2020, Rami transferred these assets, cash of $42,000, and inventory costing $74,000 to a newly created subsidiary, Tamara Company, in exchange for 20,000 shares of Tamara’s $6 par value stock. Rami uses straight-line depreciation and useful lives of 40 years and 10 years for the building and equipment, respectively, with no estimated residual value.
Give the journal entry that Tamara recorded for the receipt of assets and issuance of common stock to Rami
Homework Answers
Journal entry in the books of Tamara:_
Cash ( Dr) 42,000
Inventory ( Dr) 74,000
Land ( Dr) 160,000
Building ( Dr) 432,000
Equipment ( Dr) 148,000
To Common Stock 120,000
To Paid in capital in excess of par 736,000
Add Answer to:
Rami Corporation established on January 1, 2016. Along with
other assets, it immediately purchased land for...
Path:p Words: QUESTION 13 At the beginning of its operations, Delta Company purchased land for $100,000...
Path:p Words: QUESTION 13 At the beginning of its operations, Delta Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Roman Company, in exchange for 15,000 shares of Roman's $10 par value stock. Delta uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the land had a fair market value of 150,000...
Question 1
Phoster Corporation established Skine Company as a wholly owned subsidiary. Phoster reported the following balance sheet amounts immediately before and after it transferred assets and accounts payable to Skine Company in exchange for 4,700 shares of $11 par value common stock:Amount ReportedBefore TransferAfter TransferAssetsCash58,00023,000Accounts Receivable84,00034,000Inventory48,00013,000Investment in Skine Company142,000Land18,00015,000Depreciable Assets192,000113,000Accumulated Depreciation77,000115,00041,00072,000Total Assets323,000299,000Liabilities and EquitiesAccounts Payable34,00010,000Bonds Payable76,00076,000Common Stock53,00053,000Retained Earnings160,000160,000Total Liabilities and Equities323,000299,000Required:a. & b. Prepare the journal entry that Phoster recorded when it transferred the assets...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 63,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 223,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
TUDIN #2 2016 for company purchased 80% of the outstanding common stock of S Company on January 2, 2016, for $380,0...
TUDIN #2 2016 for company purchased 80% of the outstanding common stock of S Company on January 2, 2016, for $380,000. Balance sheets for P Company and follows: ce sheets for P Company and S Company immediately after the stock acquisition were as Current assets Investment in S Company Plant and equipment (net) Land P Company $ 166,000 380,000 560,000 40,000 $1,146,000 S Company $ 96,000 -0- 224.000 120,000 $440,000 Current liabilities Long-term notes payable Common stock Other contributed capital...
objective question On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business...
objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pou...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-ine method. Also on January 1, 2017, the subsidiary rented...
ullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by...
ullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 55,000 pounds. The subsidiary immediately borrowed 145,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 200,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary...
Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $510,000 cash. Immediately after...
Adams, Inc., acquires Clay Corporation on January 1, 2020, in
exchange for $510,000 cash. Immediately after the acquisition, the
two companies have the following account balances. Clay’s equipment
(with a five-year remaining life) is actually worth $440,000.
Credit balances are indicated by parentheses.
Adams
Clay
Current assets
$
300,000
$
220,000
Investment in Clay
510,000
0
Equipment
600,000
390,000
Liabilities
(200,000)
(160,000)
Common stock
(350,000)
(150,000)
Retained earnings, 1/1/20
(860,000)
(300,000)
In 2020, Clay earns a net income of $55,000...
On February 1, 2016, Jekel & Hyde Inc. purchased land and incurred other costs relative to...
On February 1, 2016, Jekel & Hyde Inc. purchased land and incurred other costs relative to the construction of a new warehouse. The costs related to the purchase of the land and the construction of the building are listed below: Purchase price of the land $231,250 Title insurance for the land $1,500 Legal fees to purchase land $1,000 Cost of razing an old building on the land to be used $8,500 for the construction of the warehouse Delinquent property taxes...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Path:p Words: QUESTION 13 At the beginning of its operations, Delta Company purchased land for $100,000 and a building for $180,000. After exactly 3 years, it transferred these assets and cash of $50,000 to a newly created subsidiary, Roman Company, in exchange for 15,000 shares of Roman's $10 par value stock. Delta uses straight-line depreciation. Useful life for the building is 30 years, with zero residual value. An appraisal revealed that the land had a fair market value of 150,000...
TUDIN #2 2016 for company purchased 80% of the outstanding common stock of S Company on January 2, 2016, for $380,000. Balance sheets for P Company and follows: ce sheets for P Company and S Company immediately after the stock acquisition were as Current assets Investment in S Company Plant and equipment (net) Land P Company $ 166,000 380,000 560,000 40,000 $1,146,000 S Company $ 96,000 -0- 224.000 120,000 $440,000 Current liabilities Long-term notes payable Common stock Other contributed capital...
objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
Sullivan's Island Company began operating a subsidiary in a foreign country on January 1,2017, by investing capital in the amount of 75,000 pounds. The subsidiary immediately borrowed 160,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 235,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-ine method. Also on January 1, 2017, the subsidiary rented...
Adams, Inc., acquires Clay Corporation on January 1, 2020, in
exchange for $510,000 cash. Immediately after the acquisition, the
two companies have the following account balances. Clay’s equipment
(with a five-year remaining life) is actually worth $440,000.
Credit balances are indicated by parentheses.
Adams
Clay
Current assets
$
300,000
$
220,000
Investment in Clay
510,000
0
Equipment
600,000
390,000
Liabilities
(200,000)
(160,000)
Common stock
(350,000)
(150,000)
Retained earnings, 1/1/20
(860,000)
(300,000)
In 2020, Clay earns a net income of $55,000...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Most questions answered within 3 hours.
-
What is the significance of the constraints in a physical model?
What part do distinct constraints...
asked 3 minutes ago -
Consider a 3m x 3m window in a house. The thermal conductivity
is reported to be...
asked 21 minutes ago -
Why has California been the favorite destination of large number
of secondary migrants?
asked 54 minutes ago -
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 3 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 5 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 6 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 6 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 10 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 10 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 10 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 10 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 10 hours ago