Foster Corporation established Kline Company as a wholly owned
subsidiary. Foster reported the following balance sheet...
Foster Corporation established Kline Company as a wholly owned
subsidiary. Foster reported the following balance sheet amounts
immediately before and after it transferred assets and accounts
payable to Kline Company in exchange for 4,600 shares of $12 par
value common stock:
Amount
Reported
Before Transfer
After Transfer
Assets
Cash
$
52,000
$
20,000
Accounts
Receivable
80,000
35,000
Inventory
46,000
15,000
Investment in Kline
Company
131,000
Land
17,000
14,000
Depreciable
Assets
$
184,000
$
114,000
Accumulated
Depreciation
80,000
104,000
46,000...
Lester Company transferred the following assets to a newly
created subsidiary, Mumby Corporation, in exchange for...
Lester Company transferred the following assets to a newly
created subsidiary, Mumby Corporation, in exchange for 40,000
shares of its $3 par value stock:
Cost
Book Value
Cash
$ 40,000
$ 40,000
Accounts Receivable
75,000
68,000
Inventory
50,000
50,000
Land
35,000
35,000
Building
160,000
125,000
Equipment
240,000
180,000
Give the journal entry in which Lester recorded the transfer of
assets to Mumby Corporation. (solution in Microsoft word)
Give the journal entry in which Mumby recorded the receipt of
assets...
Bearings & Brakes Corporation (B&B) was incorporated as
a private company. The company’s accounts included the...
Bearings & Brakes Corporation (B&B) was incorporated as
a private company. The company’s accounts included the following at
June 30: Accounts Payable $ 64,000 Buildings 570,000 Cash 97,000
Common Stock 240,000 Equipment 162,000 Land 479,000 Notes Payable
(long-term) 12,000 Retained Earnings 1,001,000 Supplies 9,000
During the month of July, the company had the following activities:
a. Issued 3,600 shares of common stock for $360,000 cash. b.
Borrowed $95,000 cash from a local bank, payable in four years. c.
Bought a...
On January 1, 2018, Marshall Company acquired 100 percent of the
outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acquired 100 percent of the
outstanding common stock of Tucker Company. To acquire these
shares, Marshall issued $267,000 in long-term liabilities and
20,000 shares of common stock having a par value of $1 per share
but a fair value of $10 per share. Marshall paid $22,000 to
accountants, lawyers, and brokers for assistance in the acquisition
and another $7,000 in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the...
1. A corporation reports the following balances and
amounts:
Accounts payable, $50,000
Cash provided...
1. A corporation reports the following balances and
amounts:
Accounts payable, $50,000
Cash provided by operations, $100,000
Accounts receivable, $35,000
Net income, $40,000
Average number of common shares, 15,000
Salaries and wages payable, $40,000
Average current liabilities, $225,000
Stockholders’ equity, $200,000
Average total assets, $600,000
Current assets, $300,000
Average total liabilities, $320,000
Current liabilities, $250,000
Dividends paid to preferred shareholders, $5,000
Determine its earnings per share?
Group...
Following are selected accounts for Green Corporation and Vega
Company as of December 31, 2023. Several...
Following are selected accounts for Green Corporation and Vega
Company as of December 31, 2023. Several of Green's accounts have
been omitted.
Green
Vega
Revenues
$ 900,000 $ 500,000
Cost of goods sold
360,000
200,000
Depreciation expense
140,000
40,000
Other expenses
100,000
60,000
Equity in Vega’s income
?
Retained earnings, 1/1/2023 1,350,000 1,200,000
Dividends
195,000 80,000
Current assets
300,000
1,380,000
Land
450,000
180,000
Building (net)
750,000
280,000
Equipment (net)...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
Jersey Corporation acquired 100 percent of Lime Company on
January 1, 20X7, for $201,000. The trial...
Jersey Corporation acquired 100 percent of Lime Company on
January 1, 20X7, for $201,000. The trial balances for the two
companies on December 31, 20X7, included the following amounts:
Jersey Corporation
Lime Company
Item
Debit
Credit
Debit
Credit
Cash
$
82,000
$
32,000
Accounts
Receivable
68,000
73,000
Inventory
174,000
119,000
Land
80,000
27,000
Buildings and
Equipment
491,000
153,000
Investment in Lime
Co. Stock
254,000
Cost of Goods
Sold
491,000
252,000
Depreciation
Expense
22,000
12,000
Other Expenses
69,000
69,000
Dividends
Declared...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
On June 10, 20X8, Tower Corporation acquired 100 percent of
Brown Company's common stock. Summarized balance...
On June 10, 20X8, Tower Corporation acquired 100 percent of
Brown Company's common stock. Summarized balance sheet data for the
two companies immediately after the stock acquisition are as
follows:
Tower Corp.
Brown Company
Item
Book Value
Fair Value
Cash
$
21,000
$
11,000
$
11,000
Accounts
Receivable
42,000
22,000
22,000
Inventory
100,000
38,000
43,000
Buildings &
Equipment (net)
125,000
66,000
86,000
Investment in Brown
Stock
172,000
Total
$
460,000
$
137,000
$
162,000
Accounts
Payable
$
12,000
$
4,000...