Info
Warning
Danger

Study Resources (Accounting)

Exercises 1) Saito Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears$10,000 Common stock, $1 par value50,000 Additional paid-in capital150,000 Retained earnings160,000 Total stockholders' equity$370,000 On January 1, 2011, Panata Corporation paid $300,000 for a 70% interest in Saito's common stock..
7 Views
View Answer
Multiple Choice Questions 1) On May 1, 2011, Deerfield Corporation purchased merchandise from a German firm for 78,000 euros when the spot rate for the euro was 1.48 euro per dollar. The account payable was denominated in the euro. Deerfield settled the account on August 1 when the spot rate for.
27 Views
View Answer
9) Pane Corporation owns 100% of Alder Corporation, 85% of Ball Corporation, 70% of Cake Corporation, 40% of Dash Corporation, and 10% of Eager Corporation. All of these corporations are domestic corporations. Pane, Alder and Ball belong to an affiliated group. Pane's marginal income tax rate is 35%. All investees.
6 Views
View Answer
Use the following information to answer the question(s) below. Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation,.
8 Views
View Answer
15) Pretax operating incomes of Pang Corporation and its 70%-owned subsidiary, Sala Corporation, for the year 2011, are shown below. Sala pays total dividends of $60,000 for the year. There are no unamortized book value/fair value differentials relating to Pang's investment in Sala. During the year, Pang sold land to.
7 Views
View Answer
Use the following information to answer the question(s) below. Paris Corporation purchased 80% of the outstanding voting common stock of Sanders Corporation on January 1, 2011, at a cost of $400,000. The stockholders' equity of Sanders Corporation on this date consisted of $200,000 of Capital Stock and $100,000 of Retained Earnings..
5 Views
View Answer
11) On January 1, 2011, Penny Company acquired a 90% interest in Lampire Company for $180,000 cash. On January 1, 2011, Lampire Company had the following assets and liabilities: Book ValueFair Value Cash$10,000$10,000 Accounts Receivable30,00035,000 Inventory40,00050,000 Plant Assets60,00080,000 Total Assets$140,000$175,000 Liabilities$25,000$25,000 Capital Stock100,000 Retained Earnings15,000 Total Liabilities & Stockholders' Equity$140,000 Push-down accounting is used for the acquisition. Required: 1. Assume both companies use the.
4 Views
View Answer
Multiple Choice Questions 1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the following is correct? A) Bajo should not be consolidated because noncontrolling interests hold 52%. B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure. C) Pallet.
15 Views
View Answer
15) On December 31, 2011, Dixie Corporation has the following information available: Common stock, $10 par$200,000 Additional paid-in capital60,000 Retained earnings40,000 Total stockholders' equity$300,000 On December 31, 2011, Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000. On December 31, 2011, the fair value of Dixie's assets and liabilities are equal to the.
6 Views
View Answer
3) Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair value/book value differentials associated with each investment. Separate net incomes (excluding investment income) of the affiliated companies for.
5 Views
View Answer
7) Parker Corporation owns an 80% interest in Sample Corporation's common stock. Throughout 2010, Sample had 10,000 shares of common stock outstanding and Parker had 100,000 shares of common stock outstanding. Sample's only dilutive security consists of $50,000 face amount of 8% bonds payable. Each $1,000 bond is convertible into.
7 Views
View Answer
17) On December 31, 2011, Maria Corporation has the following stockholders' equity: Common stock, $10 par$100,000 Additional paid-in capital20,000 Retained earnings80,000 Total stockholders' equity$200,000 On January 1, 2012, Maria Corporation declared and issued a 10% stock dividend when the market price per share was $50. On January 2, 2012, James Corporation purchased an 80% interest in.
6 Views
View Answer
10) Johnson Corporation (a U.S. company) began operations on December 1, 2010, when the owner contributed $100,000 of his own money to establish the business. Johnson then had the following import and export transactions with unaffiliated Mexican companies: December 12, 2011Bought inventory for 150,000 pesos on account. Invoice denominated in pesos. December 15,.
6 Views
View Answer
8) A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and accounts payable detail at September 30, 2011, their fiscal year end. ACCOUNTS RECEIVABLE Receivables denominated in U.S. dollar$426,000 Receivable denominated in 40,000 Australian dollar43,000 Receivable denominated in 70,000 Canadian dollar71,750 $ 540,750 ACCOUNTS PAYABLE Payables denominated in U.S. dollar$ 107,000 Payable.
11 Views
View Answer
Multiple Choice Questions Use the following information to answer the question(s) below. On December 31, 2010, Parminter Corporation owns an 80% interest in the common stock of Sanchez Corporation and an 80% interest in Sanchez's preferred stock. On December 31, 2010, Sanchez's stockholders' equity was as follows: 10% preferred stock, cumulative, $10 par.
14 Views
View Answer
12) Lincoln Corporation, a U.S. manufacturer, both imports needed materials and exports finished products. Their receivables and payables are listed below, prior to year-end adjustments or preparation of the closing entries. Foreign Currency Units Rate at Date of Transaction Per Books in U.S. Dollars Current Rate at 12/31/11 ACCOUNTS RECEIVABLE Japanese yen 14,678,000 $0.0109007 160,000 $0.0120 Euros 50,000 1.2372 61,860 1.4235 Hungarian forint 50,000,000 0.0044 220,000 0.0053   TOTAL 441,860 ACCOUNTS PAYABLE Euros 50,000 1.2378 61,890 $1.4235 Mexican pesos 1,250,000 0.0799 99,875 0.0845 Indian.
7 Views
View Answer
15) On January 1, 2011, Klode Corporation acquired an 80% interest in Savy Company for $400,000 when Savy's stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000. On January 1, 2011, Savy purchased a 10% interest in Klode for $50,000 when Klode's total stockholders' equity was $500,000; with.
5 Views
View Answer
9) Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1, 2011. On that date, Jonas's balance sheet accounts, at book value and fair value, were as follows: Book ValueFair Value Assets Cash$25,000$25,000 Accounts receivable-net45,00055,000 Inventories40,00060,000 Plant, property and equipment-net140,000125,000 Total assets$250,000$265,000 Equities Accounts payable$40,000$40,000 Common stock120,000 Retained earnings90,000 Total liab. & equity$250,000 Required: 1. Prepare the journal entry necessary.
3 Views
View Answer
18) On December 31, 2011, Potter Corporation has the following stockholders' equity: Common stock, $10 par$200,000 Retained earnings100,000 Total stockholders' equity$300,000 On January 1, 2012, Potter Corporation declared and issued a 10% stock dividend when the market price per share was $50. On January 2, 2012, Corrao Corporation purchased an 80% interest in Potter Corporation.
8 Views
View Answer
14) Stello Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $110, with no dividends in arrears$100,000 Common stock, $1 par value300,000 Additional paid-in capital40,000 Retained earnings160,000 Total stockholders' equity$600,000 On January 1, 2011, Kaprelian Corporation paid $300,000 for a 90% interest in Stello's common stock. On.
6 Views
View Answer
11) On September 1, 2011, Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000. Johnsen's stockholders' equity at January 1, 2011 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings. The book values of its assets and liabilities were equal to their respective fair values on.
7 Views
View Answer
14) On January 1, 2011, Peabody Corporation acquired a 90% interest in Salisbury Company for $270,000 when Salisbury's stockholders' equity was $300,000; with Common stock $200,000 and Retained earnings $100,000. On January 1, 2011, Salisbury purchased a 10% interest in Peabody for $70,000 when Peabody's total stockholders' equity was $700,000; with.
4 Views
View Answer
5) Pancino Corporation owns a 90% interest in Sakal Corporation's common stock. Throughout 2010, Sakal had 20,000 shares of common stock outstanding and Pancino had 50,000 shares of common stock outstanding. Sakal's only dilutive security consists of 2,500 stock options, with an exercise price of $20 per share. The average.
6 Views
View Answer
11) Peter Corporation owns 90% of the common stock of Subsidiary Subway. The following data is available: PeterSubway Net income for 2011$150,000$50,000 Preferred dividends for 2011$10,000 Common dividends for 2011$15,000 Number of common shares outstanding 200,00020,000 10% Preferred Stock, $100 par$100,000 The preferred stock is cumulative and convertible. The annual preferred dividends are $10,000. Required: 1. Subway's preferred stock.
6 Views
View Answer
14) The table below provides either a direct or indirect quote for a given foreign currency unit, and the related units of that foreign currency. Quote Foreign Currency Units U.S. Dollars 1 fcu : $0.0065 40,000 fcu $1 : .0098 fcu 980 fcu 1 fcu : $0.0796 80,000 fcu $1 : .0688 fcu 55,040 fcu 1 fcu : $0.3597 110,000 fcu $1 : .8443.
4 Views
View Answer
6) Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal.
5 Views
View Answer
3) Samford Corporation's stockholders' equity on December 31, 2010 was as follows: 8% cumulative preferred stock, $100 par value, callable at $109, with two years of dividends in arrears$100,000 Common stock, $25 par value700,000 Additional paid-in capital250,000 Retained earnings400,000 Total stockholders' equity$1,450,000 On January 1, 2011, Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000..
5 Views
View Answer
7) Party Corporation acquired an 80% interest in Sang Corporation on January 1, 2011 for $20,000. Balance sheet and fair value information on this date is summarized as follows: Party Book ValueSang Book ValueSang Fair Value Current assets$15,000$9,000$9,000 Land and Building-net35,0007,0007,000 Equipment8,0004,0006,000 Total assets$58,000$20,000$22,000 Liabilities$27,000$10,00010,000 Capital stock18,0004,000 Retained earnings13,0006,000 Total liab. & equity$58,000$20,000 Required: 1. Prepare an entry on the books.
3 Views
View Answer
Exercises 1) Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income).
15 Views
View Answer
13) On January 1, 2011, Jeff Company acquired a 90% interest in Marian Company for $198,000 cash. On January 1, 2011, Marian Company had the following assets and liabilities: Book ValueFair Value Cash$5,000$5,000 Accounts Receivable30,00035,000 Inventory40,00050,000 Plant Assets60,00080,000 Total Assets$135,000$170,000 Liabilities$25,000$25,000 Capital Stock100,000 Retained Earnings10,000 Total Liabilities & Stockholders' Equity $135,000 Push-down accounting is used for the acquisition. Required: 1. Assume both companies use.
5 Views
View Answer
Exercises 1) On September 1, 2011, Bylin Company purchased merchandise from Himeji Company of Japan for 20,000,000 yen payable on October 1, 2011. The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October 1. The purchase was paid on October 1, 2011. Required: 1. Did.
5 Views
View Answer
13) Sandy Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears$100,000 Common stock, $1 par value200,000 Additional paid-in capital40,000 Retained earnings160,000 Total stockholders' equity$500,000 On January 1, 2011, Bombard Corporation paid $200,000 for a 90% interest in Sandy's common stock..
8 Views
View Answer
Multiple Choice Questions Use the following information to answer the question(s) below. Pasfield Corporation acquired a 90% interest in Santini Corporation for $90,000 cash on January 1, 2011. The following information is available for Santini at that time. Book ValueFair ValueDifference Current assets$40,000$50,000$10,000 Plant assets60,00075,00015,000 Liabilities(50,000)(50,000)0 Net assets$50,000$75,000 1) Under the entity theory, a consolidated balance sheet prepared.
13 Views
View Answer
8) Separate earnings and investment percentages for three affiliates for 2011 are as follows: SeparatePercentage InterestPercentage Interest Earnings       in Acres                    in Bain       Palace Company$450,00080% Acres Inc200,00070% Bain Corporation160,00010% Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings.
6 Views
View Answer
Use the following information to answer the question(s) below. On January 1, 2011, Pamplin Corporation stockholders' equity consisted of $1,000,000 of $10 par value Common Stock, $750,000 of Additional Paid-in Capital, and $3,000,000 of Retained Earnings. On January 1, 2011, Pamplin purchased 90% of the outstanding common stock of Sage Corporation.
7 Views
View Answer
3) Pashley Corporation purchased 75% of Sargent Corporation on January 1, 2011, for $115,000. Balance sheets for the two companies on this date, prepared just prior to the purchase, are provided below. PashleySargentSargent Book ValuesBook ValuesFair Values Cash$165,000$5,000$5,000 Inventory135,00035,00045,000 Buildings & equipment-net250,00060,00095,000 Total assets$550,000$100,000$145,000 Common stock$150,000$47,500 Retained earnings400,00052,500 Total equities$550,000$100,000 Required: Prepare a consolidated balance sheet using the entity theory of.
4 Views
View Answer
16) On December 31, 2011, Lorna Corporation has the following information available: Common stock, $10 par$200,000 Additional paid-in capital60,000 Retained earnings40,000 Total stockholders' equity$300,000 On December 31, 2011, Gerald Corporation buys an 80% interest in Lorna Corporation for $240,000. On December 31, 2011, the fair value of Lorna's assets and liabilities are equal to the.
6 Views
View Answer
13) At January 1, 2010, the stockholders' equity of Raven Corporation and its 60%-owned subsidiary, Trunk Corporation, are as follows: RavenTrunk Common stock, $10 par value$700,000$400,000 Retained earnings800,00050,000 Totals$1,500,000$450,000 Trunk's net income for 2010 was $40,000. No dividends were declared or paid in 2010. Raven's Investment in Trunk account balance on December 31, 2010 was.
5 Views
View Answer
15) On January 1, 2011, Brody Company acquired an 80% interest in Kristin Company for $240,000 cash. On January 1, 2011, Kristin Company had the following assets and liabilities: Book ValueFair Value Cash$10,000$10,000 Accounts Receivable50,00050,000 Inventory50,00070,000 Plant Assets100,000100,000 Total Assets$210,000$230,000 Liabilities$100,000$120,000 Capital Stock100,000 Retained Earnings10,000 Total Liabilities & Stockholders' Equity$210,000 Push-down accounting is used for the acquisition. Both companies use the entity.
9 Views
View Answer
6) Partridge Corporation purchased an 80% interest in Sandy Corporation for $840,000 on January 1, 2011. Sandy's balance sheet book values and accompanying fair values on this date are shown below. Parent Entity Company TheoryTheory Push-Push- Down Down BookFairBalanceBalance   Value     Value     Sheet       Sheet Cash$30,000$30,000________________ Receivables200,000200,000________________ Inventory300,000360,000________________ Land50,00090,000________________ Plant assets-net250,000300,000________________ Total Assets$830,000$980,000________________ Current liabilities$180,000$180,000________________ Other liabilities120,000100,000________________ Common Stock400,000________________ Retained Earnings130,000________________________ Total Liab..
3 Views
View Answer
Use the following information to answer the question(s) below. On October 4, 2010, Sooty Corporation borrowed 250,000 British pounds from a London bank, evidenced by an interest-bearing note payable due in one year. The note was payable in pounds. Exchange rates for pounds were: October 4, 2010$1.59 December 31, 2010$1.55 October 4, 2011$1.61 9) What.
6 Views
View Answer
16) On January 1, 2011, Paul Corporation acquired a 90% interest in Satorius Company for $360,000 when Satorius' stockholders' equity was $400,000; with Common stock $200,000 and Retained earnings $200,000. On January 1, 2011, Satorius Company purchased a 10% interest in Paul Company for $90,000 when Paul's total stockholders' equity was.
6 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16464 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!