Question
Question 10 On 1/1/2017 Ziyad company purchased 90 % of Altalian company by SR 1,250,000 ,...
Question 10
On 1/1/2017 Ziyad company purchased 90 % of Altalian company by SR 1,250,000 , and paid SR 150,000 for commission and consulting expenses and SR 100.000 indirect expenses for registering. The balance sheet of Ziyad & Altalian companies on 31/12/2016 before of purchase was:
|
particulars |
A |
B (book value) |
B (fair value ) |
|
Cash Account receivables Inventories
|
1,600,000 1,400,000 1,450,000
|
225,000 500,000 700,000
|
225,000 540,000 800,000 |
|
Total assets |
4.450.000 |
1.425.000 |
1.565.000 |
|
Account payables Capital Add. Capital |
800,000 2,700,000 950,000 |
250,000 800,000 375,000 |
265,000 |
|
Total liabilities |
4.450.000 |
1.425.000 |
From the information mentioned above, fill in the blanks in the following table:
|
Particulars |
A |
B (book value) |
Consolidation adjustment Dr Cr |
Consolidation financial |
|
|
Cash Account Receiveables Inventories Goodwill Investment |
1,400,000 1,450,000 |
225,000 500,000 700,000 |
|
||
|
Total assets |
4,350,000 |
1,425,000 |
|||
|
Account payables Minority Capital Add. Capital |
800,000 2,700,000 850,000 |
250,000 800,000 375,000 |
|||
|
4,350,000 |
1,425,000 |
||||
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company by SR 500,000 , and...
On 1/1/2017 Zamboor company purchased 100 % of Al Otaibi company
by SR 500,000 , and paid SR 30,000 for commission and consulting
expenses and SR 20.000 indirect expenses for registering. The
balance sheet of Zamboor and Al Otaibi company on 31/12/2016 before
of purchase was:
particulars
Zamboor
Al Otaibi (book value)
Al Otaibi (fair value )
Cash
Account receivables
Inventories
600,000
400,000
450,000
25,000
300,000
100,000
25,000
340,000
150,000
Total assets
1.450.000
425.000
515.000
Account payables...
The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $...
The financial statements of Flathead Lake Manufacturing Company
are shown below.
Income Statement 2017
Sales
$
9,300,000
Cost of Goods Sold
5,750,000
Depreciation Expense
550,000
Gross Profit
$
3,000,000
Selling and Administrative Expenses
2,200,000
EBIT
$
800,000
Interest Expense
200,000
Income before Tax
$
600,000
Taxes
375,000
Net Income
$
225,000
Flathead Lake Manufacturing
Comparative Balance Sheets
2017
2016
Cash
$
50,000
$
40,000
Accounts Receivable
570,000
600,000
Inventory
530,000
460,000
Total Current Assets
$
1,150,000
$
1,100,000
Fixed Assets...
On January 1, 2017, Gardner, Inc. acquired 100 percent of the common stock of Drake Company...
On January 1, 2017, Gardner, Inc. acquired 100 percent of the
common stock of Drake Company for $760,000 in cash and other
fair-value consideration. Gardner Company fair value was allocated
among its net assets as follows:
The December 31, 2018 trial balance for the parent and
subsidiary follows:
Fair value of consideration transferred for Drake Company
$760,000
Book value of Drake Company
Common stock an APIC
$130,000
Retained Earnings
$370,000
$500,000
Excess Fair value over book value to:
Trademark (10-year...
17) On 1/1/15, Pom Company Acquired 90% of the voting common stock of Star Co. for...
17)
On 1/1/15, Pom Company Acquired 90% of the voting common stock
of Star Co. for $91,700,000 in cash, The FV of the NCI in Star at
date of acquisition was 6,300,000. Star’s net book value is
$14,000,000 at date of acquisition. Star’s assets and liabilities
were reported on its books at values approximating FV, except its
P&E (10 yr. life, S-L) was overvalued by $25,000,000 and Star
had previously unreported intangible assets with a FV of
$40,000,000 (5 yr....
On January 1, Year 1, Jacklin Corporation (JC) acquired 60 percent (60,000 shares of $2 par...
On January 1, Year 1, Jacklin Corporation (JC) acquired
60 percent (60,000 shares of $2 par common stock) of Mantz
Corporation (MC) for $2,500,000 in cash. The acquisition date fair
value of the noncontrolling interest’s shares (40 percent) was $40
per share. JC uses the Initial Value Method for its internal
accounting.
At the time of the acquisition MC has the following
asset and liability accounts:
Book Value Fair Value Difference
Current Assets $ 500,000 $ 500,000 $ 0
PPE...
On January 1, 2017, Portland Company acquired all of Salem Company’s voting stock for $16,000,000 in...
On January 1, 2017, Portland Company acquired all of Salem
Company’s voting stock for $16,000,000 in cash. Some of Salem’s
assets and liabilities at the date of purchase had fair values that
differed from reported values, as follows:
Book value
Fair value
Buildings and equipment, net (20 years, straight-line)
$11,000,000
$ 3,000,000
Identifiable intangibles (5 years, straight-line)
0
10,000,000
Salem’s total shareholders’ equity at January 1, 2017, was
$4,000,000. It is now December 31, 2020 (four years later). Salem’s...
14 Compare the reasons for the changes in return on equity for Eastnorth Manufacturing and its...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its industry.
Balance Sheets for INDUSTRY:
December 31
2017
2016
2015
ASSETS
Cash and marketable securities
$30,000
$25,000
$20,000
Accounts receivable
110,000
90,000
60,000
Inventories
100,000
80,000
80,000
Total current assets
240,000
195,000
160,000
Gross plant and equipment
250,000
220,000
200,000
Less: accumulated depreciation
−100,000
−65,000
−50,000
Net plant and equipment
150,000
155,000
150,000
Land
50,000
50,000
50,000
Total fixed assets
200,000
205,000
200,000
Total...
For Question 1 through 4, see the following financial information (Income Statement and balance Sheet) for...
For Question 1 through 4, see the following financial
information (Income Statement and balance Sheet) for Thornton
Company for the years ending December 31, 1998 and
1999.
1998
1999
Notes
Payable
$250,000
$220,000
Inventories
$430,000
$390,000
Long-term
Investment
$70,000
$80,000
Sales
$2,500,000
$2,900,000
Corporate
Bond
$580,000
$650,000
Annual
Depreciation
$100,000
$110,000
Excess Paid in
Capital
$100,000
$130,000
Taxes
$70,000
$90,000
Cash
??
??
Accumulated
Depreciation
$200,000
$310,000
Accounts
Payable ...
On Jan 1, 2015, Petunia Corp purchased an 70% interest in the common stock of Sunflower...
On Jan 1, 2015, Petunia Corp purchased an 70% interest in the
common stock of Sunflower Corp. for $350,000.00 Sunflower had the
following Balance Sheet on the date of acquisition:
Sunflower Corporation
Balance Sheet
Jan 1,
2015
Assets:
Liabilities & Equity
Accounts
Receivable
$40,000.
Accounts Payable $42,297
Inventory
20,000.
Bonds
Payable
$100,000
Land
35,000
Discount on
BP
(2,297)
Buildings
250,000.
Common Stk ($10 par) $10,000
Accumulated Depreciation
(50,000)
Paid in
Capital
$90,000
Equipment
$120,000
Retained Earnings $115,000....
Parent acquired Subsidiary on January 1, 2020 at a price $450,000 in excess of book value....
Parent acquired Subsidiary on January
1, 2020 at a price $450,000 in excess of book value. Of that
excess, $350,000 was allocated to an unrecorded patent with a
10-year life, with the remainder to goodwill. The parent uses the
equity method to account for its investment in its subsidiary.
In 2021, Subsidiary sold to Parent
land having a book value of $90,000 for a total price of
$244,000.
Financial statements of the two
companies for the year ended December 31,...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 12 minutes ago
asked 17 minutes ago
asked 31 minutes ago
asked 39 minutes ago
asked 45 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago