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- Bar Corporation has been looking to expand its operations and has decided to acquire the assets of Vicker Company and Kendal Company. Bar will issue 30,000 shares of its $10 par common stock to acquire the net assets of Vicker Company and will issue 15,000 shares to acquire the net assets of Kendal Company.Vicker and Kendal have the following balance sheets as of December 31, 2015:Assets Vicker KendalAccounts receivable . . . . . . . . . . . . . . . . . $ 200,000 $ 80,000Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 85,000Property, plant, and equipment:Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 50,000Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500,000 300,000Accumulated depreciation. . . . . . . . .. . . (150,000) (110,000)Total assets . . . . . . . . . .…ABC Financial Services Inc. invested $15,000 to acquire 3,750 shares of EDFInvestments Inc. on March 15, 2012. This investment represents less thun 20% of the investee's voting stock. On May 7, 2016, ABC Financial Services Inc. sells 1,950 shares for $11,050. Which of the following will be the correct journal entry for this transaction?Introduction to Fir29:01 Finlnswer SheetA. Cash$ 11,050 Loss on Disposal$ 3,950Investments$ 15,000B. Cash$ 11,050Investment$ 7,800Gain on Disposal$ 3,250C. Cash$ 11,050Investments$ 11,050D. Gain on Disposal$ 11,050Investments$ 11,050The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ Corporation
- Live Large Inc. had the following transactions involving non-strategic Investments during 2023. 2023 Apr. 1 Paid $118,050 to buy a 90-day term deposit, $118,000 principal amount, 6.5%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 4,800 common shares of Blue Balloon Ltd. at $22.25. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 3,600 common shares of Purple Car Corp. at $51.00. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 1,600 common shares of Yellow Tech Ltd. at $15.75. There was a $50 transaction fee included in the above-noted payment acount. July 1 Purchased for $85,912 a 8.5%, $83,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 7.9%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large Inc. plans to…The following information was obtained from the financial records of Roger Ltd for the year ended 30 June 2020. Prepare the statement of profit or loss for the year ended 30 June 2020. Retained earnings 1 July 2019 $90 000 Sales revenue from continuing operations for the year $600 000 Finance costs $20 000 Estimated income tax expense for the year ended 30 June 2020 $112 500 Interim dividends paid (ordinary shares) $100 000 Write off research and development costs $5 000 Share capital (1 million $2 shares) $2 000 000 Expenses from ordinary activities (excluding finance costs) $200 000 Required: a) Prepare the statement of profit or loss for the year ended 30 June 2020. b) Prepare statement of changes in equity for the year ended 30 June 2020Coronado Ltd. had sales revenue of £ 550,800 in 2022. Other items recorded during the year were: Cost of goods sold £ 336,600 Selling expenses 122,400 Income tax 25,500 Increase in value of employees 15,300 Administrative expenses 10,200 Prepare an income statement for Coronado for 2022. Coronado has 100,000 shares outstanding. (Round earnings per share to 2 decimal places, e.g. 1.48.) CORONADO LTDIncome Statementchoose the accounting period enter an income statement item £ enter a pound amount enter an income statement item enter a pound amount select a summarizing line for the first part enter a total amount for the first part enter an income statement item £ enter a pound amount enter an income statement item enter a pound amount enter a subtotal of the two previous amounts select a summarizing line for the second part enter a total amount for two parts enter an…
- The following data will be used to answer Questions 5-8. It will be repeated in each question. It is January 1, 2017 and Pegasus is contemplating the acquisition of competitor Chimera. The following details are available ($ in millions except per share data): January 1, 2017 ($ in millions) Pegasus Chimera GAAP revenue $150.40 $112.00 GAAP net income $14.04 $9.92 Tax rate 40% 35% What is 2017 pro forma (combined) GAAP pre-tax income? O 9.09 O 21.66 O 36.86 O 38.66 O 39.93Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $100,050 to buy a 90-day term deposit, $100,000 principal amount, 5.0 %, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. June 12 Purchased 3,000 common shares of Blue Balloon Ltd. at $22.25. There was a $50 transaction fee included in the above-noted payment amount. 9 Purchased 1,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 700 common shares of Yellow Tech Ltd. at $15.75. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $67,412 a 7.0 %, $65,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large Inc. plans to…Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021, at $2.10 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $74,000 but the dividend payment date is not until 2022. Abacus also announced that it had net income for the quarter ended December 31, 2021, of $188,000.Record the journal entries that Toy Co would make during the last quarter ended December 31, 2021, under the following assumptions: Toy Co does not have significant influence over Abacus and uses the cost model to account for this investment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Please donot provide solution in image format provide solution in step by step format with fast solution
- On January 1, 2015, FOREVERALONE Corporation reported total assets of P 470,000, liabilities of P 270,000 andstockholders’ equity of P 200,000. At that date, PEANUTBITTER Corporation reported total assets of P 190,000,liabilities of P 135,000, and stockholders’ equity of P 55,000. Following lengthy negotiations, FOREVERALONE paidPEANUTBITTER’s existing shareholders P 55,000 in cash for 100 percent of the voting common shares ofPEANUTBITTER.Immediately after FOREVERALONE purchased PEANUTBITTER shares:a. What amount of total assets did FOREVERALONE report in its balance sheet?b. What amount of total assets was reported in the consolidated balance sheet?c. What amount of total liabilities was reported in the consolidated balance sheet?d. What amount of stockholders’ equity was reported in the consolidated balance sheet?.During 2012 Logic Company purchased 4,000 shares of Midi, Inc. for P30 per share. The investment was classified as a trading investment. During the year Logic Company sold 1,000 shares of Midi, Inc. for P35 per share. At December 31, 2012 the market price of Midi, Inc.’s shares was P28 per share. What is the total amount of gain/(loss) that Logic Company will report in its income statement for the year ended December 31, 2012 related to its investment in Midi, Inc. shares? a. (P8,000) b. P5,000 c. (P3,000) d. (P1,000)The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless partnership began its liquidation: Cash P140,000 Liabilities P 60,000 Accounts receivable 60,000 Loan from Enigma 20,000 Inventories 85,000 Dazzle capital (20%) 75,000 Plant assets—net 200,000 Enigma capital (40%) 200,000 Loan to Dazzle 25,000 Faceless capital (40%) 155,000 P510,000 P510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive: a. P10,000, P60,000, and P15,000b. P0, P70,000, and P5,000