Questions and Answers of Financial Accounting 11th Edition

Procter & Gamble's 2019 balance sheet reported a goodwill balance of $40.3 billion. Describe what goodwill is, how it was originally recorded, and what it indicates about Procter & Gamble.
Merck, the pharmaceutical giant, reported the following in the footnotes of its 2019 SEC Form 10K regarding its portfolio of publicly traded equity securities (Dollars in millions).a. Under current
In 2019, Chevron reported net income of $2.8 billion, $4.0 billion of which was income recognized on investments in affiliate companies accounted for under the equity method. In other words, without
Tom Miller and Larry Rogers each started separate businesses on December 1, 2020, by contributing $6,000 of their own funds. Early in December, both men purchased 120 shares of Diskette common stock,
The following information was taken from the 2020 annual report of Orleans Enterprises:Related footnote: The 2020 and 2019 balances in the short-term equity investment account consist of 1,600 and
JPMorgan Chase invests in short-term equity investment securities. At the end of 2019 and 2018, the securities were valued at $72.3 billion and $71.8 billion, respectively. The investments comprise
The footnote below was taken from the 2019 annual report of Johnson & Johnson (dollars in millions).a. Approximately how much land did Johnson & Johnson sell during 2019? For simplicity,
Hulteen Hardware purchased a new building on January 1, 2016, for $ 1.5 million. The company expected the building to last 25 years and expected to be able to sell it then for $150,000. During 2021,
Bently Poster Company pays a bonus to its officers of 8 percent of net income and pays dividends to its shareholders in the amount of 75 percent of net income. On January 1, 2020, the company
Stockton Corporation purchased a new computer system on January 1, 2020, for $300,000 cash. The company also incurred $25,000 in installation costs and $10,000 to train its employees on the new
A few years ago, Kellogg, a maker of cereals and foods, hit its targeted earnings-per-share growth of 11 percent, and its stock price was up 25 percent. In the fourth quarter of that year, the
Natural Extraction Industries paid $4 million for the right to drill for oil on a tract of land in western Texas. Engineers estimated that this oil deposit would produce 100,000 barrels of crude
The following information was taken from the 2019 annual report of Intel, a world-leading supplier to the Internet economy (dollars in millions).a. From which of the financial statements was each
When The Walt Disney Company purchased the common stock of Twenty-First Century Fox, Inc., for $69.5 billion, the fair market value of the assets acquired and liabilities assumed was estimated to be
The following information was taken from the internal financial records of Southern Robotics regarding a patent filed in 2020 for a new robotics arm used for manufacturing:1. Legal and filing fees of
When Salesforce purchased MuleSoft for $6.4 billion in cash, it acquired assets with a fair market value of $1.9 billion and assumed the liabilities of MuleSoft valued at $0.2 billion.INSTRUCTIONS:a.
Benick Industries purchased a new lathe on January 1, 2020, for $300,000. Benick estimates that the lathe will have a useful life of four years and that the company will be able to sell it at the end
The footnotes to the 2019 financial statements of McDonald's Corporation contain the following statement:Long-lived assets are reviewed for impairment annually ... and ... if an individual restaurant
Portland Products purchased a machine on January 1, 2017, for $60,000 and estimated its useful life and salvage value at five years and $12,000, respectively. On January 1, 2020, the company added
In the 2019 operating section of its IFRS-based statement of cash flows, European retailer Carrefour reported the following (in millions of euros):a. Describe the basic form of the entries recorded

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